Meg O’Neill to Become BP’s First Female CEO with £11.7m Pay Package
Meg O’Neill will become the first woman to serve as chief executive of BP, the 117-year-old oil company, when she joins from Woodside Energy in April. Her total compensation for this year is expected to be at least £11.7 million, more than double that of her predecessor.
O’Neill will be BP’s first external hire for the top position. Her base salary will be £1.6 million, slightly higher than that of Murray Auchincloss, who previously held the role. However, the majority of her pay will come from share awards she was entitled to in her former position at Woodside Energy.
These share awards include £8.3 million related to performance shares scheduled to vest in 2027 and 2028, as well as £1.8 million representing the expected value of shares due to vest between 2029 and 2031.
This £11.7 million remuneration significantly exceeds the £5.3 million earned by Auchincloss, who stepped down from the CEO role late last year after serving less than two years. Auchincloss, formerly BP’s chief financial officer, officially assumed the CEO position in January 2024 following a period as interim chief after Bernard Looney’s departure in September 2023. During the interim period before O’Neill’s arrival, Carol Howle, BP’s head of trading, acted as CEO.
Challenges Ahead for BP’s Third CEO in Five Years
As BP’s third chief executive within five years, O’Neill faces significant pressure from shareholders to restore the company’s performance after a challenging period marked by a faltering green energy strategy. BP has lagged behind competitors such as Shell, which capitalized more effectively on the energy crisis triggered by Russia’s invasion of Ukraine in 2022.
BP’s declining share price has attracted attention from activist hedge fund Elliott Management and sparked speculation about a potential takeover. Earlier this year, BP became the first major oil company to issue a profit warning after its underlying earnings for 2025 were projected to fall just below $7.5 billion (£5.5 billion), down from nearly $9 billion in 2024.
The broader oil industry reported weaker profits last year amid a third consecutive annual decline in global oil prices, the steepest drop since the Covid-19 pandemic. The average oil price in 2023 was $69 per barrel, but it surged to nearly $89 per barrel recently due to Iran’s effective blockade of oil and gas shipments through the strategic Strait of Hormuz. This action was in retaliation for attacks by the US and Israel over the weekend.
Background on O’Neill’s Appointment
O’Neill’s appointment was announced late last year, shortly after BP’s leadership change that saw Bernard Looney replaced by Murray Auchincloss. Looney had overseen BP’s unsuccessful attempt to pivot towards a green energy agenda.
