Beleaguered BP boss poised to step down
EMBATTLED BP chief executive Tony Hayward is to quit the company, with the oil giant’s board deciding today whether to announce his resignation tomorrow – when the group delivers second quarter results – or wait until the Gulf of Mexico leak is plugged.
Hayward was yesterday locked in negotiations with board members over his exit plan. An announcement is most likely to be made alongside the second quarter results, which are also anticipated to show mammoth spill liability costs of up to $30bn (£19.5bn).
The beleaguered oil major’s board meets today to discuss the financial results, but talks are likely to be dominated by Hayward’s future.
He is expected to receive a £1m “golden goodbye” payoff and a £10.8m pension pot, and will leave on regular contractual terms.
BP will also announce Hayward’s successor at the same time as his departure, with Bob Dudley likely to take the reins in the autumn when Hayward leaves. Dudley, an American who would be the first non-British businessman taking the post, has been the favourite for the position since his appointment to lead the group’s day-to-day response to the spill.
BP denied Hayward was on his way out and said he still had the full backing of the board.
Hayward has been the focus of increasing public fury since the 20 April explosion of the Deepwater Horizon rig and is still widely criticised for his handling of the Gulf disaster after committing a number of damaging public relations gaffes, including stating that he wanted his “life back”, downplaying the sheer size of the spill and taking a yachting trip to the Isle of Wight while thousands of barrels of oil were leaking into the sea.
Last month, he was grilled intently by a US congressional committee investigating the cause of the explosion, which killed 10 people and caused the worst ever recorded environmental disaster in US history.
BP has faced increasing pressure from shareholders and US government officials to overhaul its senior management team, including the chairman’s post occupied by Carl-Henric Svanberg. The board could yet decide to wait until next week, to officially announce Hayward’s departure.
Some analysts view Hayward’s exit as a “political give up” for BP, while others believe that it is the only thing the group can do to win back confidence and trust among US officials and the public.