BP takes strict action against former CEO over relationships with colleagues

Bernard Looney, who resigned as BP CEO in September, is paying a heavy price for his failure to disclose past personal relationships with colleagues.

On Wednesday, BP, the London-based oil giant, said it would take a series of measures aimed not only at reducing Mr Looney’s severance package, but also at clawing back a number of previous payments, totaling 32 could amount to .4 million pounds, or about $40. million.

In a unusual press releasethe company said that “after careful consideration” it had concluded that Mr. Looney had “knowingly misled the board” when he was questioned in July 2022 about his personal relationships with company employees.

As a result, the board said, Mr. Looney was fired Wednesday for “serious misconduct,” even though he had already resigned. This move effectively ended the twelve-month notice period during which he was entitled to his salary.

As a result of the dismissal and other measures, Mr. Looney will lose several salaries, pensions and bonuses, the company said. He will also have to pay back an estimated £1 million from 2022. BP estimates Mr Looney could lose as much as £32.4m.

BP has not announced a replacement for Mr. Looney, leaving a precarious leadership situation at a time when the oil industry is trying to deal with volatile oil prices and the shift to cleaner energy. Murray Auchincloss, the Chief Financial Officer, serves as interim CEO.

Mr. Looney was not immediately available for comment.