By
Cat Viglienzoni - July 27, 2010
BP is looking to revamp itself after the ongoing disaster
in the Gulf of Mexico, and the changes go all the way to the top. BP's
much-scorned CEO Tony Hayward will be replaced by American Robert Dudley. The
company reported a record quarterly loss and allocated $32.2 billion to cover
the costs of the oil spill.
"BP remains a strong business with fine assets,
excellent people and a vital role to play in meeting the world's energy
needs," BP Chairman Carl-Henric Svanberg said in a statement. "But it
will be a different company going forward, requiring fresh leadership supported
by robust governance and a very engaged board."
The company says the decision to replace Hayward with
Dudley was a mutual agreement. Hayward became the target of American animosity
after the oil spill began and after numerous gaffes, including taking sailing
vacations and saying 'I want my life back.' But the company maintains he is
worthy of praise.
"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," Svanberg said.
Hayward said in a statement that the change in leadership
was right for the company's new phase.
"The Gulf of Mexico explosion was a terrible tragedy
for which -- as the man in charge of BP when it happened -- I will always feel
a deep responsibility, regardless of where blame is ultimately found to
lie," he said.
BP is hoping to boost the public's confidence after
seeing a close to 40 percent decline in shares as a result of the spill. The
shares were flat at $6.45 a share yesterday in trade on the London Stock Exchange.
But Hayward will hardly be in dire financial straits -
his $1.6 million severance package also came with plans to nominate him as a
non-executive director of Russian oil and gas venture TNK-BP. Also, according
to BP's most recent annual report, Hayward amassed a pension worth nearly $17
million over his 28 years of service. The pension is expected to be doled out
in annual payments of more than $900,000. He will remain on board until Nov.
30, even though Dudley is slated to replace him on Oct. 1.
BP may be hoping Hayward will have better luck in Russia
than Dudley did - the American was kicked out of Russia after a battle with
shareholders. Dudley may be able to soothe some of the public relations
nightmare in the Gulf region - he grew up in Mississippi, even though most recently
he has been living in London.
Dudley has expressed personal commitment to the region.
In a statement after he was nominated as Hayward's successor, he said he "gave
a promise to make it right" and he "will keep that promise."
(Photo
courtesy: AP Images)
