PIRC Advises BP Shareholders Reject Sutherland Re-Election
07 Aprile 2009 - 12:37PM
Dow Jones News
Shareholders of U.K. oil giant BP PLC (BP) should vote against
the re-election of Chairman Peter Sutherland due to his actions as
a non-executive director of Royal Bank of Scotland Group PLC (RBS),
advisory group PIRC said Tuesday.
"In our opinion, his actions as a non-executive director of
Royal Bank of Scotland and as a member of its remuneration
committee, bring into question his suitability as BP's chairman,"
PIRC said.
The non-executive directors of RBS have been criticized for
allowing the bank to undertake a risky expansion strategy that has
been blamed for its recent downfall. Those on the remuneration
committee have been even more strongly criticized for allowing
former Chief Executive Fred Goodwin to walk away with a GBP693,000
annual pension.
The bank is now majority owned by the U.K. government after it
was forced to inject billions of pounds into the bank to keep it
afloat.
PIRC also advised BP shareholders to vote down the remuneration
report because the company hasn't justified the most recent salary
increase of its executives.
The advisory group is also advising shareholders of Anglo-Dutch
publishing group Reed Elsevier PLC (RUK) to vote down its
remuneration report because the company awarded a GBP2,387,649
transaction-related bonus to Pat Tierney, who retired from Reed's
boards after the company sold its Harcourt Education unit. The
group discourages such bonuses for being egregious.
-By Steve McGrath, Dow Jones Newswires; 44-20-7842-9284;
steve.mcgrath@dowjones.com