Changing the Face of Oil-BP Cans CEO

BP made it official on Tuesday when they announced that CEO Tony Hayward was being replaced effective October 1, 2010. His replacement will be Robert Dudley, a long time employee of BP.

The move couldn’t have come at a time when the public was more irate with BP. The oil spill in the Gulf continues to cause outrage among the general public. It is labeled the worst environmental disaster in history.

Dudley is not a new face to the disaster as he has been working with the clean-up operation since June.

While BP is keeping silent about Hayward’s severance package, it is known that he will receive a year’s salary. This alone amounts to $1.6 million in addition to the alleged $17 million he has built up in pensions. Experts tend to agree that Hayward will not be eligible for additional bonuses and pay if based on performance.

Hayward has been the object of scrutiny since the oil rig exploded. 11 People were killed and a well ruptured in the explosion. Hayward has been with BP since 1982 and has been CEO since 2007. He is originally from London.

The company noted that efforts to seal the well were underway even in light of the change of CEO.

Strategically the company made its announcement in the wake of news of a loss of $17.2 billion during the second quarter.

The news finally puts a stop to speculation about any plans for management changes at the company.

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Posted by JoanneEmmerson on Jul 25 2010. Filed under Featured News, Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry