Tony Hayward salary | Underpaid or Overpaid?
While testifying in front of congress, BP executive Tony Hayward is facing questions about everything from opinion to technology. The amount of Tony Hayward’s salary is coming under question as well, especially because last year’s bonus and pay added up to almost $5 million. Combined with Carl-Henric Svanberg’s BP “little people” comment yesterday, this information is causing a renewed uproar about BP’s response to the Gulf oil spill.
Tony Hayward: salary and bonuses
Tony Hayward has served as CEO of BP since 2002. In 2009, Tony Hayward’s salary was $4.7 million in cash, bonuses, and cash equivalents. In translation, this means Tony Hayward’s official salary of almost $1 million was supplemented by several other sources of cash. A bonus for hitting safety and production goals, as well as benefits, made up the remaining $3.7 million.
The safety record of BP
BP makes it a practice to reward the CEO and board members for a good safety record. However, in 2009, the same year that Tony Hayward’s salary was supplemented by a very large bonus for safety, BP paid a record fine. Specifically, BP paid $87 million in fines for “outstanding life-threatening safety problems.” These fines stemmed from a 2005 explosion in Texas City that killed 15 people. Over the past five years, accidents at BP facilities have killed 26 people and injured 700.
How Tony Hayward’s salary stacks up
The salary and bonuses that BP pays Tony Hayward are extensive — certainly more than most of the oil and gas workers they employ would ever make. How does that salary stack up against others in the industry, though? In 2009, CEO of BP competitor Exxon-Mobile pulled in $27.2 million. Bruce Smith of Tesoro Corp had a salary of $8.8 million. Conoco-Phillips paid its CEO $14.4 million. The average salary for a “Petroleum Refining and Related Industries” CEO is $8.4 million. In short, the Tony Hayward salary figure seems huge at first – but in the end, he is probably one of the lower-paid CEOs in the industry. An indication of an industry that needs reform, or a CEO who was underpaid? What do you think?