Improve safety or you'll pay, funds tell BP
Improve safety or you'll pay, funds tell BP
A group of 39 UK public sector pension funds are turning the screw on BP over the oil major's safety failures. The Local Authority Pension Fund Forum, whose members have £70bn of assets under management, increased pressure on BP to improve corporate governance procedures. One of Britain's largest funds, the London Pension Funds Authority (LPFA), a member of the Forum, launched legal action against BP last week in an attempt to freeze any payout to the departing chief executive, Lord Browne. This follows a Forum call last month for BP board pay packets to be linked to safety and environmental performance (Risks 290). The Forum says unless it gets assurances of changes ahead of BP's AGM in April, it will advise members to vote against the company's remuneration policy. Commenting on the recent Baker Panel Report, which found BP had a 'corporate blindspot' on safety and which was highly critical of Lord Browne and the BP board, Forum chair Darrell Pulk said: 'The Baker report has vindicated our concerns about procedures within the company, but this is not the end of the story... We are watching carefully for signs that the company has learnt the lessons of the past and is implementing reforms.'
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