BP's Hayward to step down as chief executive

July 27, 2010
BP PLC Chief Executive Tony Hayward agreed to step down from his post, effective Oct. 1, and he will be succeeded by Robert Dudley, executive director who is currently overseeing the Macondo oil spill response.

Paula Dittrick
OGJ Senior Staff Writer

HOUSTON, July 27 -- BP PLC Chief Executive Tony Hayward agreed to step down from his post, effective Oct. 1, and he will be succeeded by Robert Dudley, executive director who is currently overseeing the Macondo oil spill response.

The move was anticipated as BP works to seal the deepwater Macondo well, ending an oil spill in the Gulf of Mexico. Hayward will remain on the BP board until Nov. 30. BP also plans to nominate him as a nonexecutive director of BP’s Russian joint venture TNK-BP.

BP Chairman Carl-Henric Svanberg said, “The tragedy of the Macondo well explosion and subsequent environmental damage has been a watershed incident. BP remains a strong business. But it will be a different company going forward, requiring fresh leadership supported by robust governance and a very engaged board.”

Dudley joined BP from Amoco after the merger of the two companies in 1998. He was president and chief executive officer of TNK-BP during 2003-08. He said he has “the greatest admiration” for Hayward and “for his unremitting dedication to dealing with the Gulf of Mexico disaster.”

BP said Dudley will be based in London and will hand over his present duties in the US to Lamar McKay, chairman and president of BP America.

“In this change of roles, I particularly want the people of the Gulf Coast to know that my commitment to remediation and restitution in the region is not lessened,” Dudley said. “I gave a promise to make it right and I will keep that promise.”

Dudley was appointed to BP’s board in April 2009 as an executive director and member of the senior management team. Previously, he oversaw the BP Group’s activities in Asia and the Americas.

Hayward comments
BP said the decision was a mutual one between Hayward and the company’s board. Hayward called the explosion of the Transocean Ltd.’s Deepwater Horizon semisubmersible “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.”

Hayward said, “From day one, I decided that I would personally lead BP’s efforts to stem the leak and contain the damage, a logistical operation unprecedented in scale and cost. We have now capped the oil flow, and we are doing everything within our power to clean up the spill and to make restitution to everyone with legitimate claims.”

Hayward said he will work closely with Dudley to ensure a smooth transition. Hayward has been with BP for nearly 30 years and was its chief executive for 3 years.

“I am sad to leave so many fine colleagues and friends who have helped this great company to achieve so much over the years. I am sorry that achievement has been overshadowed by the tragedy,” Hayward said.

BP said that under the terms of his contract Hayward would receive 1 year’s salary in lieu of notice, amounting to £1.045 million.

Contact Paula Dittrick at [email protected].