BP will not pay bonuses for 2010 to the top executives whose divisions were involved in the worst-ever offshore U.S. oil spill last year, the company said in an annual report dominated by the disaster.
The London-based oil giant also said its proven oil and natural gas reserves fell 1.2 percent last year as it sold assets to pay for the spill, the bill for which it has estimated at around $41 billion.
Current chief executive Bob Dudley, former chief executive Tony Hayward and former exploration and production head Andy Inglis all missed out on cash performance bonuses which for Hayward totaled over 2 million pounds ($3.25 million) in 2009.
Remuneration decisions for 2010 were dominated by the scale and impact of the accident in the Gulf of Mexico, said Remuneration Committee chairman DeAnne Julius in the company's annual report.
The remuneration committee shared the group chief executive's view that no bonuses should be paid on group-level results.
Hayward and Inglis both left the company in October 2010.
BP paid annual bonuses, however, to its chief financial officer, Bryon Grote, and to refining and marketing chief executive Iain Conn.
The two directors were paid part of their overall bonuses after their respective units met targets, but their total bonuses for 2010 were around 90 percent lower than those they received as a bonus payment the year before.
Just days before the Macondo well blowout which led to the oil spill last year, some of BP's shareholders criticized its pay policies.
Even so, sentiment toward that remuneration report was an improvement from the previous year when more than a third of investors voted against it.
BP wants to put the spill behind it and so far this year has announced two major deals -- a $7.2 billion tie-up with India's Reliance Industries and a share swap with Russia's Rosneft.
The annual report said BP's proven reserves fell 1.2 percent in 2010 to 18.07 billion barrels of oil equivalent, reflecting the impact of a $30 billion disposal programme to help pay for the Macondo spill.
Proven reserves are a key measure of an oil company's value and an indicator of growth potential.
One such disposal was BP's $7 billion sale to Apache Corp
of oil and gas assets last year, and BP said Apache had started arbitration over a price dispute concerning Canadian properties it acquired in the deal.
BP added it had created a more powerful safety and operational risk (S&OR) unit which would operate independently to help boost its commitment to safety.
The head of S&OR will be a member of BP's most senior executive team.
(Editing by Jon Loades-Carter)
($1 = 0.6146 pound)