Investor anger at BP tar sands project and chief’s pay

BP today faced the ire of investor groups at its annual meeting in the ExCel Centre in Docklands, as they raised environmental concerns about its controversial tar sands oil project, and also condemned the 40% pay increase handed to chief executive Tony Hayward at a time when profits plunged.

The oil giant faced a backlash from a coalition of more than 100 shareholders, who asked it to produce a comprehensive report on the oil sands project in Canada, which they say is more expensive and harmful to the environment than traditional exploration.

However, big City institutions backed BP's management to oppose the vote.

The protest was led by ethical investment charity FairPensions and The Co-operative Asset Management.

They enlisted more than 5000 people, including Radiohead's Thom Yorke and Zac Goldsmith, to sign a petition and ask their pension providers and other large BP investors to support the resolution in a vote.

Niall O'Shea, of The Co-operative Asset Management, said: "BP's projections on profitability and carbon intensity look surprisingly rosy compared to industry averages... investors deserve to know how these projections are arrived at. They need to know, what is the company's long-term direction?"

Shareholders also voiced anger at BP's decision to award Hayward a pay package worth more than £4 million, as profits fell to the lowest level in six years.