BP chief Tony Hayward to step down in October

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BP chief Tony Hayward to step down in October
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BP chief executive Tony Hayward is to leave his job in October after sustained criticism of his handling of the Gulf of Mexico oil leak, the BBC has learned.

He will be nominated for a position on the firm’s Russian joint venture with TNK, a spokesman confirmed.

No details of his financial pay-off have yet been announced.

Mr Hayward is expected to be replaced by American colleague Bob Dudley, who is in charge of the clean-up operation.

Mr Dudley was the former chief of the BP-TNK joint venture, but was forced to leave Russia in 2008 amid a dispute with shareholders.

Criticised

BP is set to reveal its latest results on Tuesday. The accounts will cover spill compensation and costs of up to £19bn, and may result in the worst quarterly loss for a UK firm.

They are also likely to discuss terms of the severance package for Mr Hayward – whose performance in the crisis has been widely criticised.

It is understood the terms of Mr Hayward’s employment entitle him to a payout of at least £1m, equivalent to a year’s salary.

At the same time, his pension pot is worth £10.8m, resulting in an annual payment of about £584,000.

Mr Hayward began his career with BP 28 years ago as a rig geologist in the North Sea before working his way up to board level. He was a popular choice for the top job when Lord Browne stepped aside in 2007.

But he will be seen to carry the can for being at the helm for the worst year in the company’s history.

http://www.bbc.co.uk/news/business-10434908
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[deepseacon]

BP boss Hayward to get immediate £600,000 pension

BP chief executive Tony Hayward will get an immediate annual pension worth about £600,000 ($930,000) when he leaves in October, the BBC has learned.

Mr Hayward is to stand down after sustained criticism of his handling of the Gulf of Mexico oil leak.

However, a BP source said he would be nominated for a non-executive position at the firm’s Russian joint venture.

BBC business editor Robert Peston said that the pension entitlement was "bound to be hugely controversial

‘Honour contract’

BP pension scheme rules say that those who joined before April 2006 can take the pension at any point from age 50. Mr Hayward is 53.

He will also receive a year’s salary plus benefits worth more than £1m.

Mr Hayward’s pension pot is valued at about £11m and he will keep his rights to shares under a long-term performance scheme which could – depending on BP’s stock market recovery – eventually be worth several million pounds.

Our business editor said that because Mr Hayward was leaving by mutual agreement rather than being sacked, the BP board felt it had "to honour the terms of its contract with him".

He will be replaced by American colleague Bob Dudley, the BBC understands, though no formal announcement has yet been made.

Mr Dudley, who is in charge of the Gulf of Mexico clean-up operation, was the former chief of the BP-TNK joint venture, but was forced to leave Russia in 2008 amid a dispute with shareholders.

http://www.bbc.co.uk/news/business-10434908
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