BP 2006 Annual Report Download - page 169

BP Annual Report and Accounts 2006 167
46 Remuneration of directors and key management
Remuneration of directors $ million
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2006 2005 2004
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Total for all directors
Emoluments 14 18 19
Gains made on the exercise of share options 12 –3
Amounts awarded under incentive schemes 14 86
Emoluments
These amounts comprise fees paid to the non-executive chairman and the non-executive directors and, for executive directors, salary and benefits
earned during the relevant financial year, plus bonuses awarded for the year.
Pension contributions
Five executive directors participated in a non-contributory pension scheme established for UK staff by a separate trust fund to which contributions are
made by BP based on actuarial advice. One US executive director participated in the US BP Retirement Accumulation Plan during 2006.
Office facilities for former chairmen and deputy chairmen
It is customary for the company to make available to former chairmen and deputy chairmen, who were previously employed executives, the use of
office and basic secretarial facilities following their retirement. The cost involved in doing so is not significant.
Further information
Full details of individual directors’ remuneration are given in the directors’ remuneration report on pages 68-75.
Remuneration of key management $ million
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2006 2005 2004
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Total for all key management
Short-term employee benefits 30 25 24
Post-retirement benefits 443
Share-based payments 26 27 20
Key management, in addition to executive and non-executive directors, includes other senior managers who attend the Group Chief Executive’s
Meeting.
Short-term employee benefits
In addition to fees paid to the non-executive chairman and non-executive directors, these amounts comprise, for executive directors and senior
managers, salary and benefits earned during the year, plus bonuses awarded for the year.
Post-retirement benefits
The amounts represent the estimated cost to the group of providing defined benefit pensions and other post-retirement benefits to key management in
respect of the current year of service measured in accordance with IAS 19 ‘Employee Benefits’.
Share-based payments
This is the cost to the group of key management’s participation in share-based payment plans, as measured by the fair value of options and shares
granted accounted for in accordance with IFRS 2 ‘Share-based Payments’. The main plans in which key management have participated are the
Executive Directors’ Incentive Plan (EDIP), the Medium Term Performance Plan (MTPP) and the Long Term Performance Plan (LTPP). For details of
these plans refer to Note 44.