BP Plans to Defer Dividend Until Spill Can Be Better Assessed
Additionally, all future dividend payments would be treated in the same manner until the company has regained footing, and the scope of the oil giant's liabilities from the disaster can be determined, the newspaper reported, citing unnamed sources.
While final approval for the plan to defer dividends would need to be given by BP's board next month, a growing number of BP directors now recognize that the move may be essential to placate American public opinion.
"We are considering all options on the dividend. But no decision has been made," Tony Hayward, BP's chief executive said in an interview with The Wall Street Journal on Friday.
As one of Britain's biggest companies, BP is a mainstay of nearly every U.K. pension fund. The National Association of Pension Funds estimates that U.K. pension funds' exposure to BP is about 1.5% of their total assets, which are worth more than £800 billion, BBC News reported.