BP chief executive Bob Dudley saw his total remuneration increase by 25 per cent last year although the company's profits fell, writes Mark Williamson.

The annual report for the oil and gas giant shows the American executive received total remuneration of $12.7m (£8.3m) in 2014, compared with $10.2m in the preceding year. Underlying profits fell to $12.1bn from $13.4bn in 2013 amid falling oil prices and production. Mr Dudley's base salary increased by 3 per cent annually to $1.8m. BP, which recently announced plans to shed 300 jobs in Aberdeen, said the rise was in line with the average increase for employees in the UK and US. Mr Dudley's annual bonus fell to $1m from $2.3m after Mr Dudley elected to defer $1m of the award. The remuneration committee decided BP's overall performance in 2014 exceeded the target based on measures including cash generated by the firm and cost savings achieved. Mr Dudley received deferred bonuses and performance share awards worth $9.79m compared with $5.96m in 2013. BP, which suffered a disastrous spill in the Gulf of Mexico in 2010, noted the company had to meet safety and environmental sustainability criteria between 2012 and 2014 for the bonuses to vest. Regarding the share awards, the remuneration committee recognised the need for BP to make further progress towards restoring trust following the 2010 leak.