BP Annual Report and Form 20-F 2010

43. Remuneration of directors and senior management
Remuneration of directors
Notes on financial statements
$ million
2010 2009 2008
Total for all directors
Emoluments 15 19 19
Gains made on the exercise of share options 2 2 1
Amounts awarded under incentive schemes 4 2 –
Emoluments
These amounts comprise fees paid to the non-executive chairman and the non-executive directors and, for executive directors, salary and benefits
earned during the relevant financial year, plus bonuses awarded for the year. Also included was compensation for loss of office of $3 million in 2010
(2009 nil and 2008 $1 million).
Pension contributions
During 2010 three executive directors participated in a non-contributory pension scheme established for UK employees by a separate trust fund to which
contributions are made by BP based on actuarial advice. Two US executive directors participated in the US BP Retirement Accumulation Plan during 2010.
Office facilities for former chairmen and deputy chairmen
It is customary for the company to make available to former chairmen and deputy chairmen, who were previously employed executives, the use of office
and basic secretarial facilities following their retirement. The cost involved in doing so is not significant.
Further information
Full details of individual directors’ remuneration are given in the directors’ remuneration report on pages 112 to 121.
Remuneration of directors and senior management
2010 2009
$ million
2008
Total for all senior management
Short-term employee benefits 25 36 34
Post-retirement benefits 3 3 4
Share-based payments 29 20 20
Senior management, in addition to executive and non-executive directors, includes other senior managers who are members of the executive
management team.
Short-term employee benefits
In addition to fees paid to the non-executive chairman and non-executive directors, these amounts comprise, for executive directors and senior managers,
salary and benefits earned during the year, plus cash bonuses awarded for the year. Deferred annual bonus awards, to be settled in shares, are included
in share-based payments. Short-term employee benefits includes compensation for loss of office of $3 million (2009 $6 million and 2008 $3 million).
Post-retirement benefits
The amounts represent the estimated cost to the group of providing defined benefit pensions and other post-retirement benefits to senior management
in respect of the current year of service measured in accordance with IAS 19 ‘Employee Benefits’.
Share-based payments
This is the cost to the group of senior management’s participation in share-based payment plans, as measured by the fair value of options and shares
granted accounted for in accordance with IFRS 2 ‘Share-based Payments’. The main plans in which senior management have participated are the EDIP,
DAB and RSP. For details of these plans refer to Note 41.
BP Annual Report and Form 20-F 2010 217
Financial statements