A “clawback” is an inherently terrifying concept. It essentially allows an organization to take back money that it has already paid out, usually for some significant reason. And indeed, oil stock BP (NYSE:BP) managed to do just that with former CEO Bernard Looney. The report was sufficient to draw a muted cheer from investors, who sent shares up fractionally in Wednesday afternoon trading.
Alleging “serious misconduct” surrounding his relationships with colleagues, the recently-departed Looney will not be paid just under $41 million in outstanding salary, deferred bonuses, pension payments, and any other compensation that may have been involved, reports note. Some of that “serious misconduct,” reports note, includes providing “inaccurate and incomplete” information to BP’s board as long ago as July 2022, as well as “knowingly mis(leading) the board.” In the meantime, there will be no further payments to Looney, and he’s also not getting a 2023 Fiscal Year bonus.
Gains Arising Elsewhere
While Looney might have been a bit of a black eye, BP is working to make gains elsewhere. Recently, BP won an auction down in Brazil to carry out oil and gas production in the Santos Basin, specifically, the Tupinamba offshore block. BP was the only bidder and won for just under $1.5 million in signing bonuses, reports noted. Meanwhile, it’s also asking the U.S. to step in on a matter of natural gas; Venture Global, a natural gas exporter, is having some trouble getting shipments out the door, and BP is trying to get to the bottom of the matter. It’s looking for some government muscle to do that job, and the U.S. may have just the muscle in question.
Is BP a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BP stock based on five Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 4.96% rally in its share price over the past year, the average BP price target of $46.07 per share implies 31.48% upside potential.
