BP Chief Hayward to step down
BP CEO TONY HAYWARD TO STEP DOWN WITH A $1.6 MILLION PAYOFF, from MSNBC.com
NEW YORK – BP said Tuesday that controversial chief executive Tony Hayward will step down on Oct. 1 as it announced losses of nearly $17 billion in three months. Hayward — who will receive a payoff of more than $1.6 million — is to be succeeded by American Robert Dudley , who has been overseeing BP’s much-maligned response to the oil spill in the Gulf of Mexico. Hayward will also be entitled to draw an annual pension of 600,000 pounds ($928,000) from a pension pot valued at around 11 million pounds ($17 million).
BP said the Gulf spill had cost the company $32.2 billion, driving the firm to a second quarter loss of $16.97 billion. The oil giant also announced plans to sell $30 billion of assets over the next 18 months. BP spokesman David Nicholas told msnbc.com that the firm’s current market capitalization — or the total value of its shares — was about $124 billion. He said cost of the spill represented just under 10 percent of the company’s annual oil production.
Commenting on Hayward’s departure, BP chairman Carl-Henric Svanberg said: “The BP board is deeply saddened to lose a CEO whose success over some three years in driving the performance of the company was so widely and deservedly admired. “The tragedy of the Macondo well explosion and subsequent environmental damage has been a watershed incident,” he added. “BP remains a strong business with fine assets, excellent people and a vital role to play in meeting the world’s energy needs. But it will be a different company going forward, requiring fresh leadership supported by robust governance and a very engaged board.”
‘Robust operator’
BP said Dudley, currently head of BP’s U.S. operations, will be based in London and will hand over his present duties in the U.S. to Lamar McKay, chairman and president of BP America. He said Dudley, 54, had “proved himself a robust operator in the toughest circumstances.”
“I am honored to be given the job of rebuilding BP’s strengths and reputation but sad at the circumstances,” Dudley said. “I do not underestimate the nature of the task ahead, but the company is financially robust with an enviable portfolio of assets and professional teams that are among the best in the industry. I believe this combination — allied to clear, strategic direction — will put BP on the road to recovery.”