Processing Magazine

BP CEO Hayward Replaced by American Robert Dudley

July 27, 2010
The Associated Press reports, BP''s CEO Tony Hayward will be replaced by American Robert Dudley on Oct. 1, the company said as it reported a record quarterly loss and set aside $32.2 billion to cover costs of the Gulf of Mexico oil spill. BP said the decision to replace Hayward with the company''s first ever non-British chief executive was made by mutual agreement. BP said it planned to recommend him for a non-executive board position at its Russian joint venture and will pay him 1.045 million pounds, a year''s salary, instead of the year''s notice he was entitled to. Besides permanently plugging the oil leak and cleaning up the spill and the company''s image, Dudley will oversee the sale of $30 billion in assets over the next 18 months to bolster the company''s finances. In a statement on Tuesday, Hayward said it was right that BP embark on its next phase under new leadership. Dudley will be based in London when he takes up his appointment and will hand over his present duties in the United States to Lamar McKay, the chairman and president of BP America. BP said the $32.2 billion charge for the cost of the spill led it to record a loss of $17 billion for the second quarter, compared with a profit of $4.39 billion a year earlier.