BP 2013 Annual Report Download - page 11

Strategic report
2013 – the third increase in two years. We also returned value to shareholders through the
$8-billion share repurchase programme announced in March 2013. Additional distributions
are planned as we make further divestments to reshape our portfolio. The milestones set
for 2014 will be an important measure of progress and your board is monitoring this
closely.
I am particularly pleased that in 2013 we completed our transaction with Rosneft, closing
one chapter in Russia and opening another. This is an important investment with the
potential to create substantial value for BP over the years to come.
2013 also saw the shocking attack at the In Amenas facility in Algeria. Our thoughts
remain with the families and friends of those who died. The response of management to
this tragedy was strong and the board acted positively and promptly.
We continue to address uncertainty in the US. In 2013, we once again met our
responsibilities to the region by paying legitimate claims arising from the 2010 accident
and oil spill in the Gulf of Mexico. And we met our responsibilities to shareholders by
challenging and resisting any attempt to take advantage of BP with claims that are not
legitimate. We will fight through the courts until matters are resolved properly, however
long that takes. In the meantime, the board is working to ensure that BP is not distracted
from growing the business and creating shareholder value.
Boards set the tone and values that shape performance and behaviour over the long term.
An effective board creates an enduring framework within which management can lead.
Having been through challenging times, the BP board has grown into a strong team with
experienced non-executives drawn from relevant industries. This year, more than ever,
they have been out to see BP’s operations for themselves, from India to Indiana. We
continue to be assisted on geopolitical matters by the international advisory board.
Our approach to governance has enabled us to focus on critical strategic issues, with our
board committees taking on the many oversight and compliance matters that require
attention.
Remuneration continues to be a board matter of particular importance to shareholders,
with executive pay policy now subject to a vote at the annual general meeting. BP has a
record of ensuring there are clear links between strategy, performance and remuneration.
This will continue.
I believe diversity helps to strengthen the effectiveness of a board. We plan succession
well ahead and are developing a pipeline of potential board candidates. We are committed
to progress and finding the right people for our board.
I would like to end by thanking you, our shareholders, for your continued support. I also
want to acknowledge the people who drive your company forward every working day.
From Bob Dudley and his management team to employees across the business; our
people are doing a great job of transforming BP. Their hard work has moved us forward,
with the promise of more to come.
Carl-Henric Svanberg
Chairman
6 March 2014
Board performance
For information about the board and its
committees see page 71.
Remuneration
For information about our approach to
executive directors’ remuneration see
page 20.
BP Annual Report and Form 20-F 2013 7
Top: Members of BP’s safety, ethics and
environment assurance committee (SEEAC)
visited Canada to see the oil sands operations at
the Sunrise project site and meet local
community leaders and staff.
Bottom: Members of SEEAC travelled to the
Gelsenkirchen refinery in Germany to speak with
apprentices and control room operators about risk
management and processes.