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‘No final decision’ made over Tony Hayward

NEWS
‘No final decision’ made over Tony Hayward
BP Boss Hayward ‘To Take Russian Role’

Monday, July 26, 2010

BP has said no decision has been taken over the future of beleaguered chief executive Tony Hayward, amid reports he is about to depart with a pension of almost $ 17.05 million.

Mr. Hayward’s fate looks set to be finalised at a board meeting in London, with a formal announcement on his future expected soon afterwards.

The oil firm’s current managing director, Bob Dudley, is the favourite to succeed him.

‘BP notes the press speculation over the weekend regarding potential changes to management and the charge for the costs of the Gulf of Mexico oil spill,’ the company said in a statement.

‘BP confirms that no final decision has been made on these matters.’

Mr. Hayward – who even very recently was told he had the ‘full support’ of the board and senior management – was reported to be discussing his severance package with senior management over the weekend.

His employment terms entitle him to a payout of at least $1.55 million, but The Daily Telegraph has reported the figure could reach as much as $16.73 million.

‘Tony Hayward’s departure as BP’s chief executive will, as I’ve reported several times during the last 36 hours, not be formally ratified until the oil company’s board meets,’ Kleinman said.

‘Even then, a number of factors could intervene to delay his resignation or conspire to manufacture another outcome altogether.’

A U.S. government official briefed by senior BP figures confirmed to the Associated Press news agency a change of leadership was under way.
BP chief executive Tony Hayward is to step down from the top job, but he will be put forward for the board of the oil firm’s Russian operations.

He exclusively revealed that along with details of his plans to step down, BP would also announce that Mr Hayward was likely to be proposed for a non-executive role on the board of Russian venture TNK-BP.

‘The role on the TNK-BP board is not about keeping Hayward sweet,’ said Kleinman.

‘Much more importantly, if it is confirmed as I expect in the next 12 hours or so, it would underline the streak of realpolitik that courses through the veins of all multinational companies.’

BP’s current managing director Bob Dudley is the favorite to succeed Mr Hayward following the crisis that has engulfed the company since the Deepwater Horizon rig exploded in April.

But as the head of TNK-BP in 2008, Mr. Dudley had a huge falling-out with the Russian authorities and ended up fleeing the country in fear for his safety.

‘At a time when BP is already fighting one political fire on one international front, in the US, there has to be a risk that Dudley’s appointment as chief executive ignites another,’ commented Kleinman.

‘That’s where Hayward comes in.’

‘He may be damaged goods in Washington, but BP insiders say that one of his significant achievements during his three years as chief executive was helping to negotiate a new governance structure at TNK-BP.’

‘His relationships in Moscow are said to very strong.’

Mr. Hayward was reported to be discussing his severance package with senior management over the weekend.

His employment terms entitle him to a payout of at least $1.55 million, but his pension pot from a 28-year career with BP is around $16.73 million and he has also received impressive numbers of shares in recent years.
• Latest News & Headlines » Home «
• Source(s): Sky News / BskyB / News Corporation
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