BP’s Tony Hayward to Step Down

Tony Hayward has worked for BP for 28 years.

Tony Hayward has worked for BP for 28 years.

Despite BP’s Deepwater Horizon disaster the company has made $10 billion so far this year.  The head of BP, Tony Hayward, it appears will not be the one to announce the figures to shareholders.  Hayward has been in negotiations this weekend working out the details of a severance package as he steps down from the controls of the major oil company.

The announcement of Hayward’s resignation may come as early as Monday.  The board is scheduled to meet prior to the shareholder’s meeting and are being careful in working out Hayward’s severance to make sure it doesn’t appear that Hayward was rewarded for failure.

Reports have it that BP is offering one year’s salary of 1.045 million pounds.  Hayward is certain to expect more in his departure from the company in which he has worked for the last 28 years.  His contract entitles him to current salary and benefits.  In 2009 he earned 4.56 million pounds which includes a 1.045 million pounds salary, 2.09 million pounds annual bonus, an 852,000 pound long term incentive pay and 440,000 pounds by cashing in 220,000 share options.

If he does resign, Hayward will miss out on 546,000 share options and another potential 2 million shares under the long term incentive plan.  He has a 10.8 million pounds pension that will begin paying him 584,000 a year starting at age 60.  Since he is only 52 that means the man who has worked for BP since he was 24 will have to wait eight years to draw from the fund.

The expected person to step into Hayward’s vacated office in Bob Dudley, who now serves as director of BP’s oil response unit.  Dudley seems to be better received by media and should do well as the company seeks to repair its reputation.

The internal investigation into the explosion that led to the oil spill has been delayed to be released till next month.  It had been initially scheduled for release this week but delays in information from Transocean which operated the well, and Haliburton, which worked on the cement plug has made it difficult for BP to complete their inquiry.

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