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DisciplineLatest NewsDiscipline and grievancesDismissalRelationships at work

Former BP chief exec did not reveal colleague relationships

by Adam McCulloch 14 Dec 2023
by Adam McCulloch 14 Dec 2023 Bernard Looney, former chief executive of BP
Zuma/Alamy
Bernard Looney, former chief executive of BP
Zuma/Alamy

Oil giant BP has found that its chief executive between 2020 and September 2023, Bernard Looney, committed serious misconduct in failing to disclose relationships with colleagues.

Looney is to be dismissed without notice and will not receive further salary or benefits, which would have amounted up to £32.4m.

He had resigned in September after admitting not being “fully transparent” about his past personal relationships. The board said it had been knowingly misled by Looney.

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This week, the firm said Looney had given “inaccurate and incomplete assurances” as part of an investigation into the relationships in 2022.

Looney, however, said in a statement that he was “disappointed with the way this situation has been handled”.

According to the BBC, Looney’s decision to resign meant his long-term performance share awards lapsed along with his annual bonus for 2023, which represented most – 87% – of his £32.4m package. The board also decided to halt other payments and bonuses.

BP began to investigate Looney’s past relationships with colleagues following an anonymous tip-off in 2022 but initially found no breach of company conduct rules. Looney at the time gave assurances about his future behaviour.

However, three months ago, the board said, it had received similar allegations “recently”, prompting another review.

Looney began his career at BP in 1991 as a drilling engineer becoming a member of its executive team in 2010 reaching the position of head of oil and gas production by 2019.

In March 2023, it was announced that Looney had received a 2022 pay package of £10m, more than double what he received the previous year. The package included a £1.4m salary, a £2.4m bonus, and a £6m share award, as well as benefits.

Chief financial officer Murray Auchincloss has been acting as BP’s interim chief executive while the oil firm investigated allegations about Looney.

The news of Looney’s departure from BP once again puts the spotlight on the conduct of senior leaders and executives in some of the UK’s most prominent organisations.

Tony Danker, the head of the UK’s largest business lobby group the CBI, was dismissed in April over complaints about his behaviour at work, and hedge fund boss Crispin Odey was forced to step down from the hedge fund he founded in June after reports of sexual harassment allegations by 13 women. He has denied the claims.

In December 2021, the British former chief executive of McDonald’s, Steve Easterbrook, lost most of his severance package after the emergence of evidence of more relationships with employees than the one for which he had originally lost his job.

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Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

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