BP record as Russia deal pays off

BP chief executive Lord Browne has been well rewarded for taking the oil giant into Russia and keeping clear of reserves troubles like those encircling fierce rival Shell.

Its annual report and accounts, out today, show his total pay packet for 2003 rose 8% to nearly £3.3m, after a jump in basic salary to more than £1.3m and an annual bonus of £1.9m.

Browne will also be able to enjoy the high life when he steps down from the group. His mammoth pension pot after 37 years of service is now £13.9m.

Bruce Evers, analyst at Investec, said: 'Browne has created serious value for his shareholders and is worth every penny. Compare it to what's going on at Shell.'

BP stunned the City early last year by signing an historic deal to join forces with Russian group TNK to find new reserves, to replace ageing fields in areas such as the North Sea.

The sky-high oil price during 2003 helped the business post record profits of $12.38bn (£6.5bn) for the year, a 42% increase and a mark that beat its previous best of $12.2bn in 2000.

Finance director Byron Grote earned a total $1.95m after an annual bonus of $1m, up 17% on the previous 12 months. The two directors earmarked to replace Browne when he retires in 2008 - John Manzoni and Tony Hayward - received £878,000 and £829,000 respectively.