Pressure on Peter Sutherland to leave BP

By SAM FLEMING FOR MAILONLINE
Updated: 16:35 EST, 7 April 2009

BP shareholders are being urged to oppose the re-election of chairman Peter Sutherland because of his work on the board of fallen lender Royal Bank of Scotland.

Shareholder advisory group PIRC called into question Sutherland's 'suitability' given he held a nonexecutive post in the governmentcontrolled bank from 2001 until February.

BP launched a strident defence of Sutherland, calling him 'deeply able and highly respected'. The controversy came after the Association of British Insurers issued an 'amber' alert on BP (down 7¼p to 446p).

Under pressure: BP chairman Sir Peter Sutherland is facing calls for his head amid claims his senior role at Royal Bank of Scotland raised doubts over his suitability.

The powerful City group called on shareholders to examine its pay policies because these included a discretionary element.

Chief executive Tony Hayward enjoyed a £356,000 increase in remuneration to £2.5m in 2008, although pay will be frozen this year.

BP said PIRC's concerns were 'not shared by our shareholders' and that the objections to Sutherland were unrelated to his performance on its board.

Earlier this month former RBS chairman Sir Tom McKillop stood down from BP because of his role at the stricken Scottish lender.