BP pension fund shrinks by $5bn

BP's MASSIVE pension fund lost $5bn (£3.2bn) last year as crashing stock markets and rising costs took a heavy toll on the company's retirement pot.

The energy multinational revealed the scale of the ravages to its pension fund in its 2002 accounts, which were published today. They showed that the fund's $1.6bn surplus in 2001 had been turned into a $3.4bn shortfall a year later.

They also reveal that chief executive Lord Browne of Maddingley enjoyed a remuneration package that was almost unchanged in sterling terms at £3.03m, even though the company suffered a poor year during which it missed a number of key production targets.

In dollar terms, Lord Browne's annual pay rose from $4.37m to $4.55m. Rodney Chase, the deputy chief executive who is retiring in April, received $2.16m, up from £2.04m.

BP defended its remuneration scheme, stressing that 'it is essential to the success of our business that we attract and retain exceptional people at all levels, and create the conditions in which they are motivated to be the best in their field'.

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