While we have extensive experience helping BP employees and alumni optimise their benefits, Emery Little operates independently and is not affiliated with or endorsed by the bp group, including BP Pension Trustees Limited and the BP Pension Fund. This allows us to provide objective, independent guidance focused solely on your best interests.
Having served current and former bp employees for over 30 years, we’re committed to helping more bp employees and senior executives make the most of their financial package in 2025 and beyond. This allows them to concentrate on what matters most and be excited about their future.
Senior executives at bp often travel extensively and have very little spare time. As a result, they rarely get to think about what the future looks like until much closer to retirement. We’re looking to change that.
Today, we answer a question we hear frequently: “What should I do with my bp shares?”
While it might seem straightforward, the answer isn’t one-size-fits-all – and that’s exactly why it often gets left in the ‘too difficult’ pile.
The real risk
The biggest risk isn’t necessarily what you do with your bp shares, but rather leaving the question unanswered year after year. Many senior executives we work with are time-poor, travelling extensively, and focused on their demanding roles. This often leads to inaction, allowing shares to accumulate significantly over decades of service.
At its core, you have two options: keep them or sell them. Simple, right? Well, not quite.
Keeping your shares
- It’s the path of least resistance
- Requires no immediate decisions
- Shows confidence in your employer
- Creates concentration risk in one company
- May not align with your long-term financial goals
Selling your shares
- Allows for diversification
- Creates opportunities for strategic reinvestment
- Reduces company-specific risk
- Triggers questions about timing and reinvestment
- Can feel emotionally challenging when you believe in the company
Why it’s not just about numbers
While we often think of money in terms of spreadsheets and calculations, financial decisions are deeply emotional. Your bp shares represent more than just monetary value – they’re a symbol of your career success and loyalty to the company. This emotional connection can make objective decision-making challenging.
A practical approach
While there’s no universal ‘right’ answer, here’s what we’ve learned from three decades of advising bp executives:
- Regular, systematic selling often works better than trying to time the market
- Diversification is crucial for long-term financial security
- Your share strategy should be part of a broader financial plan
- Cash isn’t always king – holding proceeds in cash long-term can erode wealth through inflation
- Having a clear structure removes emotional decision-making
One effective approach we’ve seen work well is establishing a regular selling pattern. For example, one of our clients sells all available shares on the first working day of each quarter. This creates a disciplined approach that removes emotional bias and ensures steady diversification.
Tax considerations
An often overlooked but crucial aspect of managing your bp shares is keeping accurate records of their pooled acquisition costs. This information is essential for correctly calculating and reporting any capital gains or losses on your tax return when you sell shares.
If you’ve accumulated shares over many years through various schemes, calculating these costs can become complex. The pooled cost needs to account for:
- All purchase prices
- Shares acquired through dividend reinvestment
- Matching rules for shares sold within 30 days
- Market value of shares received as compensation
- Original acquisition costs of any shares transferred from your spouse, as these transfers maintain the original base cost
Regular selling of shares, particularly as soon as they vest, can significantly reduce the administrative burden of tracking pooled costs over extended periods.
If you need assistance with calculating your pooled acquisition costs, we can put you in touch with tax specialists who have extensive experience helping bp executives manage their share-related tax affairs efficiently.
The way forward
The key isn’t about finding the ‘perfect’ answer – it’s about making an informed choice that aligns with your broader financial goals. This is where a tailored financial plan becomes crucial. It provides the framework to make these decisions based on your specific circumstances, timeline, and objectives rather than emotion or inertia.
If you’re holding bp shares and feeling uncertain about your next move, the most important step is to make this decision part of your larger financial planning conversation. Whether you choose to hold or sell, the decision should be intentional and aligned with your long-term financial goals.
You can learn more about how we help bp employees and executives make the most of their benefits here. You’ll find more information about our experience, approach, and how we could help you create a clearer financial future. If you found this useful, please share it with any colleagues or friends who might also benefit.
