Money Matters - Simplified

BP’s embattled CEO to quit

Tony Hayward, chief executive of BP, is to leave the company, bowing to pressure regarding his handling of the Deepwater Horizon oil rig explosion.

The oil spill is the Gulf of Mexico, which is amongst the worst environmental disasters in the history of the U.S, has prompted Tony Hayward, chief executive officer of BP Plc, to leave the company.

The departing CEO has been widely criticized for the manner in which he has handled the oil spill response.

Speculations that Hayward would resign or would be asked to leave have been rife ever since the spewing oil assumed monumental proportions.

A press release issued by the drilling major stated, "BP notes the press speculation over the weekend regarding potential changes to management. BP confirms that no final decision has been made on these matters."

Official announcement expected soon
Hayward's departure is likely to be announced Monday evening when BP's board meets to declare the British major’s second-quarter earnings.

It is being speculated that the embattled CEO would be replaced by clean-up chief Bob Dudley.

However, there is no official confirmation of Hayward’s departure and no affirmation of Dudley taking over the reign.

A press release issued by the drilling major stated, "BP notes the press speculation over the weekend regarding potential changes to management. BP confirms that no final decision has been made on these matters."

"Tony Hayward remains our chief executive and has the full support of the board and senior management," company spokesman Mark Salt had told CNN Sunday.

Meanwhile, BBC, has said that Hayward is "negotiating the terms of his exit, with a formal announcement likely within 24 hours."

Some false moves
Hayward has had to bear all the criticism since the BP owned Deepwater Horizon drilling rig exploded April 20 in the Gulf of Mexico.

To make matters worse, Hayward had made inopportune statements to the press.

A month after the incident that left thousands of gallons of oil leaking into the water, Hayward opined, "I think the environmental impact of this disaster is likely to be very, very modest."

He went on to say that the oil spilled at that point was "relatively tiny" in comparison to the "very big ocean."

When questioned if he could sleep at night in wake of the disastrous effects of the spill, he replied, "Of course I can."

And then on May 31, 2010, he was apologetic but still made tongue-in-cheek comment, "We're sorry for the massive disruption it's caused their lives. There's no one who wants this over more than I do. I would like my life back."

Hayward was pulled off from the routine leadership of the cleanup operation in June and task was assigned to Dudley.

President Barack Obama had gone to the extent of saying that he would have fired Hayward by now.