Overall, 39.5% of the shares awarded in the 2011-2013 plan are expected
to vest, based on results as shown in the table above.
Relative TSR was weighted heaviest, reflecting the high strategic priority
on restoring value. Outcomes failed to meet the threshold required and so
no shares vested for this measure.
Reserves replacement has been very positive and we expect that BP will
be in second place amongst the oil majors. Since the actual results of the
other majors are not publicly available until their respective annual reports
are published, the committee will review the outcomes when all
information is confirmed and decide then on the final vesting. For the
purposes of this report, and in accordance with UK regulations, second
place has been assumed. Any adjustment to this will be reported in next
year’s annual report on remuneration.
The committee’s review also concluded that progress against the three
strategic imperatives has been positive. S&OR management culture has
shown steady improvement and its high importance increasingly
embedded in the minds of employees, as demonstrated by our internal
surveys. Moreover the S&OR performance metrics have consistently
improved including against those of our peers. BP’s external reputation has
similarly shown steady improvement as measured by external surveys
assessing reputation amongst different groups in key countries. Finally,
staff alignment and morale has been reassuringly positive in the aftermath
of the Deepwater Horizon accident, with internal surveys demonstrating
improvements and a high scoring of measures related to group priorities
including safety and trust.