John
07-27-2010, 11:15 AM
BP has confirmed Tony Hayward will step down after the company posted losses of £11bn for the second quarter of the year.
The under-fire BP chief will instead be nominated for the role of non-executive director of Russian joint venture TNK-BP, as Sky News City editor Mark Kleinman reported on Monday.
American Bob Dudley will replace Mr Hayward from October 1, becoming the company's first foreign chief executive.
BP also confirmed it will write off £20.8bn to cover the cost of the spill and sell assets for up to £19bn over the next 18 months to maintain financial liquidity.
Mr Hayward said the firm would pay most of the direct costs by the end of the year, although the remaining bill - including longer-term compensation as well as fines and penalties - is "likely to be spread over a number of years".
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."
When asked why the oil company was allowing Mr Hayward to step down if he was such an asset, Mr Svanberg told Sky News it was entirely down to the Gulf of Mexico disaster.
"I think it became clear that you needed in this case a new face, a new man to lead this and of course America is our biggest market so that is also important, so I think it became difficult for him to take on this task," he said.
Kleinman had predicted Mr Hayward would be awarded the TNK-BP role before it was confirmed by the company, saying it would "underline the streak of realpolitik that courses through the veins of all multi-national companies".
BP said that under the terms of his contract Mr Hayward - who has led the firm since 2007 - would receive a year's salary in lieu of notice, amounting to just over £1m.
The company chief achieved notoriety for a string of PR blunders during the crisis and reportedly negotiated his departure over the weekend.
Fellow board member Bob Dudley - currently in charge of the clean-up operation - had been named by many as the favourite to take over.
Mr Dudley was previously head of the Russian operation, but fled the country after a dispute flared up with the firm's Russian partners.
Mr Hayward is seen as having a good relationship with Moscow and his appointment to TNK-BP could reportedly help smooth any anxiety in Russia over Mr Dudley's promotion.
The White House has stressed that any changes among BP's executives should not alter the company's oil spill obligations.
Spokesman Robert Gibbs said: "BP cannot, should not and will not leave the Gulf without meeting its responsibilities to plug the well, to clean up the damage that's been caused and to compensate those that have been damaged."
Source - Yahoo.
The under-fire BP chief will instead be nominated for the role of non-executive director of Russian joint venture TNK-BP, as Sky News City editor Mark Kleinman reported on Monday.
American Bob Dudley will replace Mr Hayward from October 1, becoming the company's first foreign chief executive.
BP also confirmed it will write off £20.8bn to cover the cost of the spill and sell assets for up to £19bn over the next 18 months to maintain financial liquidity.
Mr Hayward said the firm would pay most of the direct costs by the end of the year, although the remaining bill - including longer-term compensation as well as fines and penalties - is "likely to be spread over a number of years".
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."
When asked why the oil company was allowing Mr Hayward to step down if he was such an asset, Mr Svanberg told Sky News it was entirely down to the Gulf of Mexico disaster.
"I think it became clear that you needed in this case a new face, a new man to lead this and of course America is our biggest market so that is also important, so I think it became difficult for him to take on this task," he said.
Kleinman had predicted Mr Hayward would be awarded the TNK-BP role before it was confirmed by the company, saying it would "underline the streak of realpolitik that courses through the veins of all multi-national companies".
BP said that under the terms of his contract Mr Hayward - who has led the firm since 2007 - would receive a year's salary in lieu of notice, amounting to just over £1m.
The company chief achieved notoriety for a string of PR blunders during the crisis and reportedly negotiated his departure over the weekend.
Fellow board member Bob Dudley - currently in charge of the clean-up operation - had been named by many as the favourite to take over.
Mr Dudley was previously head of the Russian operation, but fled the country after a dispute flared up with the firm's Russian partners.
Mr Hayward is seen as having a good relationship with Moscow and his appointment to TNK-BP could reportedly help smooth any anxiety in Russia over Mr Dudley's promotion.
The White House has stressed that any changes among BP's executives should not alter the company's oil spill obligations.
Spokesman Robert Gibbs said: "BP cannot, should not and will not leave the Gulf without meeting its responsibilities to plug the well, to clean up the damage that's been caused and to compensate those that have been damaged."
Source - Yahoo.