...but it’s fine for bosses paid in dollars like BP’s Bob Dudley

THE American-born chief executive of Britain’s biggest oil company BP is set to take home about £2million more this year even without a pay increase thanks to the nosediving pound.

Bob Dudley lives in the UK but his annual salary and bonuses are paid in US dollars so his income will soar in real terms.

The currency windfall is likely to fuel an already simmering investor revolt over his bumper pay package.

Last year when BP made a $5.2billion loss, Dudley was paid $19.6million in total, which at the exchange rate at BP’s year-end in December of $1.48 to £1 equated to £13.2million. If he is paid a comparable sum this year, the weaker pound – now at $1.22 – would mean it is worth £16million.

This sum includes pension contributions of $6.5million, but even if these are excluded because he is likely to retire to the US, Dudley’s pay and bonuses last year added up to $13million, or £8.8million. After the fall in the pound Dudley’s remuneration excluding pension contributions would have risen to £10.6million.

Dudley faced a shareholder revolt over his 20 per cent pay rise at the annual meeting earlier this year.

BP is currently consulting major shareholders over future pay plans, but the company said the exchange rate has not been raised as an issue.

The company’s dividends are paid in dollars so UK investors would benefit from the fall in the pound.

More than a dozen FTSE 100 companies pay bosses in either dollars or euros, according to proxy voting agency Manifest. Chief executive Sarah Wilson said: ‘We would expect to see remuneration committees ensure they have proper adjustment mechanisms in place to ensure that the rewards truly are pay for performance.’