BP 2008 Annual Report Download - page 75

BP Annual Report and Accounts 2008
BP board performance report
Safety and operations
The group operations risk committee (GORC) was formed at the end of
2006 and is an executive level committee, chaired by the group chief
executive. The GORC made regular reports to SEEAC during the year,
including progress on the group-wide implementation of the operating
management system (OMS) and BP’s six-point plan, the development
and utilization of the process safety index and statistics relating to the
group’s safety and operational performance.
L Duane Wilson was appointed by the board in 2007 as an
independent expert to provide an objective assessment of BP’s progress
in implementing the Panel recommendations, aimed at improving
process safety performance at BP’s five US refineries. Mr Wilson, who
was a member of the Panel, reports to the chairman of SEEAC and is
independently funded through the company secretary’s office.
Mr Wilson attended six meetings of the committee during 2008
and a private meeting with the committee during the year without the
presence of executive management. Topics discussed included a
presentation on his detailed work plan and progress updates. In May
2008, Mr Wilson published his first annual report where he assessed
BP’s progress against the 10 Panel recommendations. The report noted
that while significant progress had been made, areas for improvement
still remained. Further information on the report is available on
BP’s website.
Regional reviews and site visits
During the year, the committee reviewed reports on Alaska, the BTC
pipeline, shipping and TNK-BP. The committee visited BP’s refinery
operations in Rotterdam, and coal bed methane operations in Durango,
Colorado. In addition, some members visited the BP solar manufacturing
facilities in Maryland and the group’s operations in Azerbaijan.
Other topics
Other topics reviewed by the committee during the year included
business continuity and crisis management, environmental requirements
for new projects, results from a survey on safety culture in BP’s US
refineries and a report from the US ombudsman on concerns raised by
employees in Alaska. The committee also received and discussed
quarterly reports from the general auditor and the group compliance and
ethics officer.
SEEAC 2008 Activities
Approximate allocation of agenda time*
51%
13%
20%
16%
Safety and operations
Regional and functional reports
Internal audit and compliance and ethics *Excludes time spent on site visits
Other topics
Performance evaluation and forward agenda
The committee undertakes an annual review of its performance and
process. In 2008, the review involved interviews with each committee
member, with the results discussed at the committee’s November
meeting. Conclusions from the evaluation included noting the helpful
insight gained from site visits and the value to the committee of the
knowledge and expertise of the independent expert in respect of
safety in the US refineries. The committee also reviewed its forward
agenda for 2009.
SEEAC plans to meet seven times during 2009.
Remuneration committee report
Membership
The committee consists solely of non-executive directors who are
considered by the board to be independent.
Members of the remuneration committee during the year were
Dr DeAnne Julius (chairman), Erroll Davis, Jr, Sir Tom McKillop and
Sir Ian Prosser. The chairman of the board also attends meetings of
the committee.
Attendance
The committee met six times during 2008.
Remuneration committee Remuneration committee
meetings eligible to attend meetings attended
Dr D S Julius (chairman) 6 6
E B Davis, Jr 6 5
Sir Tom McKillop 6 6
Sir Ian Prosser 6 6
P D Sutherland 6 6
Role and authority of the committee
The committee determines, on behalf of the board, the terms of
engagement and remuneration of the group chief executive, the chairman
and executive directors and reports on those to shareholders. The
committee is independently advised.
Further details on the committee’s role, authority and activities
during the year are set out in the directors’ remuneration report, which
is the subject of a vote by shareholders at the 2009 AGM.
The remuneration committee plans to meet five times in 2009.
Chairman’s committee report
Membership
The committee consists of the chairman and all non-executive directors.
Attendance
The committee met four times during 2008.
Chairman’s committee meetings Chairman’s committee
eligible to attend meetings attended
P D Sutherland (chairman) 4 4
Sir Ian Prosser 4 4
A Burgmans 4 4
C B Carroll 4 3
Sir William Castell 4 4
G David 2 2
E B Davis, Jr 4 4
D J Flint 4 4
Dr D S Julius 4 4
Sir Tom McKillop 4 4
Dr W E Massey (former member) 2 2
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