CEO Hayward Steps Down as Chief Executive of BP

220px-Tony_Hayward_-_World_Economic_Forum_on_the_Middle_East_2008On Tuesday BP announced that Tony Hayward will step down from his position as chief executive after the oil spill in the Gulf of Mexico caused panic. His replacement as new chief executive from October 1st will be American Robert Dudley. Dudley has been in the oil industry for over 30 years and has been an employee at BP for a long time.

He was put as the head of the clean up operation in the Gulf Coast during June. BP states that Dudley when given the position will mainly focus on what was the cause of the spill and how safety measures can be improved. His replacement for head of clean up would be Lamar McKay, BP America President. Hayward will receive a full years salary amounting to $1.6 million while greater details of his severance package will not be disclosed to the public at this time.

Hayward however would be receive any cash bonuses or any stock awards which are given to past executives. The decision if he qualifies for retirement benefits has still not been decided since his circumstances are unique in nature. Hayward is also to be nominated as a non executive director TNK-BP, Russian gas and oil. What his involvement with TNK-BP would be is still not clear. BP is currently in the process of rebuilding their entire image from scratch as in the second quarter over 17 billion dollars were lost mostly because of the 32 billion dollars which was headed for the oil spill.