BP's incoming chief executive, Meg O'Neill, is set to earn a minimum of £11.7 million in her first year, a figure that more than doubles the compensation received by her predecessor. This substantial pay package underscores the high stakes as O'Neill prepares to take the helm of the embattled oil company in April.
Historic Appointment and Compensation Details
Meg O'Neill will make history as the first woman to serve as CEO of the 117-year-old oil major, joining from the Australian firm Woodside Energy. Her appointment marks BP's first external hire for its top leadership position, signaling a strategic shift for the company.
O'Neill's base salary will be £1.6 million, slightly above the £1.45 million earned by her predecessor, Murray Auchincloss. However, the bulk of her remuneration comes from share awards she was entitled to in her previous role at Woodside Energy.
Breakdown of Share Awards
The £11.7 million total includes significant share-based components:
- £8.3 million to cover performance share awards originally scheduled to vest in 2027 and 2028.
- £1.8 million to account for the expected value of share awards due to vest between 2029 and 2031.
This compensation package far exceeds the £5.3 million earned by Auchincloss, who departed the CEO role late last year after less than two years in the position. Auchincloss had officially stepped into the role in January 2024, following an interim period after Bernard Looney's abrupt exit in September 2023.
Challenges Facing the New CEO
As BP's third chief executive in under five years, O'Neill inherits a company facing significant challenges. Disgruntled shareholders are expected to pressure her to revive BP's fortunes, particularly after its failed attempt to pursue a greener energy agenda left it lagging behind rivals like Shell.
BP's floundering share price has made it a target for activist hedge funds, including the feared New York-based Elliott Management, and fueled rumors of a potential takeover. The company also became the first major oil firm to suspend shareholder buybacks earlier this year after its underlying earnings fell to just below $7.5 billion for 2025, down from nearly $9 billion in 2024.
Industry-Wide Pressures
The entire oil industry reported weaker profits last year as global oil prices fell for the third consecutive year, experiencing the steepest decline since the COVID-19 pandemic. However, prices have recently surged to just below $89 a barrel this week after Iran effectively blocked oil and gas cargoes from transiting the Strait of Hormuz, a crucial trade route, in retaliation for weekend attacks by the US and Israel.
O'Neill's surprise appointment came late last year, shortly after BP appointed Albert Manifold to chair its board, replacing Helge Lund, who oversaw the company's unsuccessful green energy transition efforts.
The incoming CEO's compensation reflects both the competitive landscape for executive talent and the immense challenges awaiting her as she seeks to stabilize and redirect one of the world's most prominent energy companies.
