BP has named Meg O’Neill as its new chief executive, making her the first woman and the first external hire for this top position in the company’s 117-year history. O'Neill joins BP from Woodside Energy, where she held a significant role and was a former executive at ExxonMobil. Her base salary at BP will be £1.6 million, which is only slightly higher than the base salary of her predecessor, Murray Auchincloss, who earned £5.3 million before leaving the role late last year. However, O'Neill's total compensation will be considerably greater due to performance-linked share awards from her previous position that will significantly boost her earnings this year.

A significant portion of O'Neill's pay package, amounting to £11.7 million, will largely come from her previous share awards at Woodside Energy, which include £8.3 million in performance share awards set to vest in 2027 and 2028 and an additional £1.8 million expected from awards vesting in 2029-2031. This strategic move by BP indicates the company's efforts to attract high-caliber talent amidst ongoing challenges in the oil industry, while also reflecting broader trends of high executive compensation amidst increased scrutiny from shareholders and the public alike.

The hiring of O'Neill is seen as a significant step for BP, aligning with the company's objectives to transition towards cleaner energy, while also addressing the need for strong leadership in a fast-changing industry. Her appointment comes at a critical moment when BP and other oil companies are facing substantial pressure to adapt to environmental concerns and promote sustainability, making it imperative for the company to not only focus on performance but also on public perception and corporate responsibility in the energy sector.