If in doubt, throw cash at the shareholders. It’s a safe tactic for a new chief executive assailed on two sides by investors with conflicting grumbles. BP’s Murray Auchincloss seized his debut moment. There will be $3.5bn of share buy-backs in the first half of this year, accelerating to a total of $14bn by the end of next. The shares rose 5%. For a week or two, that might stop people pointing out how BP’s share price has lagged its peers’.
Yet shareholders of all hues – those who want to transition faster out of fossil fuels and those who can’t see the point – surely also wanted to hear a clear statement from Auchincloss on where he stands in the great debate. How will BP prioritise its spending of cash that isn’t going on buy-backs and dividends?
