BP shares form a big part of many Group and Senior Leaders’ financial packages. Whether you’ve built up bp shares through the share schemes, received them as bonuses, or accumulated holdings over many years of service, you’re probably wondering: what should I do with my bp shares?
Senior Leaders at bp often travel extensively and have little spare time. This means they rarely get to think about their financial future until much closer to retirement. We’re here to help change that.
While the question might seem straightforward, the answer isn’t one-size-fits-all – and that’s exactly why bp shares often get left in the ‘too difficult’ pile.
The hidden risk of doing nothing with your bp shares
The biggest risk isn’t necessarily what you do with your bp shares. It’s leaving them untouched year after year. Many Senior Leaders we work with are time-poor and focused on demanding roles. This often leads to inaction, allowing bp shares to accumulate significantly over decades.
This creates “concentration risk” – having too much wealth tied up in one company’s shares, even one as established as bp. When you add in your salary and career being tied to the same company, this concentration becomes even more significant. If bp faces challenges, it could potentially affect both your income and your investments simultaneously.
You essentially have two choices: keep your bp shares or sell them.
Your bp share options explained
Keeping your bp shares
Benefits:
- No immediate decisions required
- Shows confidence in bp’s future
- Potential for continued share price growth
- Simple to maintain
Risks:
- Creates concentration risk
- May not align with long-term financial goals
- Exposure to oil sector volatility
- Missed diversification opportunities
Selling your bp shares
Benefits:
- Allows diversification across investments
- Reduces company-specific risk
- Provides flexibility for other financial goals
- Creates opportunities for tax-efficient reinvestment
Considerations:
- Requires decisions about timing and reinvestment
- Tax implications need planning
- Can feel emotionally challenging
- Need strategy for where proceeds go
Why bp share decisions involve more than numbers
Your bp shares represent more than monetary value – they symbolise career success and company loyalty. This emotional connection can make objective decision-making challenging.
For many bp Group and Senior Leaders, these shares represent years of dedication and belief in the company’s future. However, sound financial planning requires looking beyond emotional attachment to consider overall financial security.
What we’ve learned from advising bp Group and Senior Leaders
From over 25 years of helping bp Group and Senior Leaders, we’ve observed some common patterns:
Many clients find that having a systematic approach removes the emotional element from decision-making. Some choose regular selling patterns, others prefer holding strategies, but the key is having a clear framework rather than making ad-hoc decisions.
The most successful outcomes tend to involve bp share decisions being part of a broader financial plan rather than isolated choices. This helps ensure decisions align with overall financial goals and risk tolerance.
Tax essentials for bp shares
Managing bp shares requires keeping accurate records of pooled acquisition costs. This information is essential for calculating capital gains or losses when you sell.
If you’ve accumulated bp shares over many years through various schemes, calculating these costs becomes complex. Your pooled cost must account for:
- All purchase prices
- Shares from dividend reinvestment
- 30-day matching rules
- Market value of shares received as compensation
- Original costs of transferred spouse shares
Regular selling, particularly when shares vest, significantly reduces the administrative burden of tracking costs over time.
Need help calculating pooled acquisition costs? We can connect you with tax specialists experienced in bp share taxation.
Creating your bp share strategy
The key isn’t finding the ‘perfect’ answer – it’s making an informed choice aligned with your broader financial goals. A tailored financial plan provides the framework for decisions based on your specific circumstances rather than emotion or inertia.
Your bp share decisions should consider:
- Total investment portfolio composition
- Risk tolerance and timeline
- Tax efficiency opportunities
- Other bp benefits and pension arrangements
- Financial goals beyond bp
If you’re uncertain about your next move, make this decision part of your larger financial planning conversation. Whether holding or selling, the decision should be intentional and aligned with long-term financial goals.
How we help bp Group and Senior Leaders
We’ve worked with bp Group and Senior Leaders for over 25 years, understanding the unique challenges and opportunities of bp benefits and share schemes.
Learn more about how we help bp Group and Senior Leaders maximise their financial packages, or get in touch to discuss your specific bp share situation.
Who do you know who has been putting off dealing with their bp shares? Please share this with any bp colleagues or friends who might benefit from guidance on managing their bp shares.
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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.
