BP Amoco has introduced a flexible reward and a fast-track promotion scheme that also encourages employees to consider the environmental impact of their business actions.
Vice-president of remuneration and benefits Kevin Abbott said the company is split into 150 semi-autonomous business units, which are headed by a senior manager.
These units are divided into several teams. Each receives bonuses according to its financial performance and environmental practices and can choose to receive bonuses in cash, shares or benefits.
Abbott said it was important that employees received bonuses for more than just increasing profits. “When you are a multinational company everything you do is under the microscope. This means when we get things right everybody knows – but when we get it wrong, everybody knows,” said Abbott at the CIPD’s Compensation Forum in London.
The senior managers of the business units, however, are rewarded according to the overall performance of the company. This is to get them all to work together.
Last week, BP announced profits of more than £9bn for the last financial year. It employs 100,000 people in 100 different countries.