We Won’t Have Tony To Kick Around Anymore

Jad Mouawad and Clifford Krauss at NYT:

BP’s board is expected on Monday to name an American, Robert Dudley, as its chief executive, replacing Tony Hayward, whose repeated stumbles during the company’s three-month oil spill in the Gulf of Mexico alienated federal and state officials as well as residents of the Gulf Coast.

The planned appointment of an American to run the London-based company, which was confirmed by a person close to BP’s board, would underscore how vital the United States has become to BP. About one-third of the company’s oil and gas wells, refineries and other business interests are in the United States, and 40 percent of its shareholders are Americans.

The move would also be a recognition by the board that even though the oil has stopped spewing into the gulf, dealing with the consequences of the Deepwater Horizon accident — from tens of billions of dollars in claims to possible criminal charges and new regulations on offshore drilling — is likely to dominate the company’s agenda for years.

Bryan Walsh at Time:

When Tony Hayward became CEO of BP in 2007, replacing a disgraced Lord John Browne, he was taking over a company in turmoil. BP was still recovering from a 2005 fire at its Texas City refinery that killed 15 people—one of the worst industrial accidents in recent memory, and a result of Browne putting profits over safety. Hayward—a skilled geologist and dedicated BP lifer—was meant to be a practical antidote to the flashy, globe-trotting Browne, a professional executive who promised to consolidate the company’s sprawling multinational operations. Most of all, Hayward would change BP’s careless corporate culture; he pledged in an early speech to focus “like a laser” on safety.

It was a line that, like much else, Hayward would come to regret. The Deepwater Horizon accident showed that there was still something deeply wrong with BP, and Hayward’s tone-deaf performance during the early days of the oil spill only made things worse. By mid-June Hayward had stepped back from the oil spill, ceding day-to-day control of the response to the American BP executive Bob Dudley. Now it seems Hayward is gone for good. According to a senior U.S. official speaking to the Associated Press early Sunday afternoon, Hayward will be replaced as BP’s CEO, possibly as early as Monday when the company’s board meets in London.

Though BP was officially denying the rumors, Hayward’s departure has long been considered of when, not if. Since the spill began on April 20, Hayward has been a gaffe machine.

Christopher Helman at Forbes:

The timing of this move is significant for two reasons. First, it coincides with the Tuesday release of BP’s sure-to-be-disastrous second-quarter results. Second, and more importantly, it indicates that BP believes the blowout at the Macondo well has been stopped, that the cap in place now will continue to hold back the gusher until the relief wells can kill it for good.

Image is everything, and the image that BP needs to present is one of a heroic Dudley Do-Right arriving on the scene to rescue Nell from the clutches of Snidely Whiplash. Tall, blondish Robert Dudley even looks kind of like his namesake hero from The Rocky and Bullwinkle Show, though with none of the bombast. No matter that Dudley has been with BP for a decade, having come over in the 1998 acquisition of Amoco. As we wrote in this piece when he assumed responsibility for oil spill oversight a month ago, Dudley has proven his managerial toughness over the years (especially in tangles with the Russian government when he was head of TNK-BP). And vitally, Americans will find another American a more trustworthy oil spill cleaner than they would another Brit.

Jim White at Firedoglake:

Yes, the twit who famously told us that this pesky spill had been such a nuisance that he wanted his life back is about to get just that.

And what a life it will be. Despite being at the helm as the company’s negligence unleashed the worst oil spill in US history and the subsequent loss of almost half the company’s value, Hayward will still be rich beyond the wildest dreams of almost anyone.

CNN gives us the details on Hayward’s likely exit package and current compensation. First, CNN informs us that Hayward won’t get a huge, American-style Golden Parachute. I don’t know about you, but I certainly would settle for the chrome bungee jump or whatever this is that Hayward is getting:

“He will be lucky to get a single year’s salary,” said Paul Hodgson, a senior researcher at The Corporate Library, a governance group. “And even that could be mitigated in certain circumstances.”

His compensation package — including salary and bonuses — was worth 3.158 million British pounds ($4.87 million), according to the company’s 2009 annual report. He’s also due an annual pension of 584,000 pounds ($901,000).

Additionally, he held more than 535,000 shares in the company as of December 31, which would currently be worth about 212 millon pounds (about $327 million).

That’s right, Hayward will be “lucky” to get an extra lump of almost $5 million to go away, while pulling in a pension of almost a million dollars a year on top of his stock worth $327 million.

Poor thing, I sure hope he doesn’t feel insulted by that paltry package.

If Hayward’s exit package, pension and stock ownership are indeed as reported by CNN, I’d like to nominate his life as the ultimate definition of moral hazard. He will have destroyed the Gulf of Mexico, made billions of dollars worth of stock held around the world go poof and still will walk away with riches beyond imagination. If he is to suffer nothing more uncomfortable than the “humiliation” of losing his job, then there simply is no incentive for other CEO’s to act responsibly in the future.

Joe Gandelman at Moderate Voice:

TV and other stand-up comedians had a ball making fun of a CEO could not keep a lid on his enjoyment of his “Lifestyles of the Rich and Famous” lifestyle for even the comparatively fleeting few moments of his life required to do press briefings and who could not put off avoid being photographed in settings that underscored the stark contrast between wealthy him and those who face losing their livelihoods in the Gulf. To wit:

“BP CEO Tony Hayward said recently, ‘No one wants this thing over more than I do. I’d like my life back.’ Tony, I’m so sorry you had your summer disrupted. I’d buy you a drink, but you’d probably spill that too … and make me clean it up.” –Craig Ferguson

“This Tony Haywire guy, whatever his name is, he told the BBC on Sunday that he believes the new oil cap that they’ve installed will eventually capture the vast majority of oil spewing from the well. You know, if they could capture half the BS spewing from Tony Hayward, people would be thrilled.” —Jay Leno

“BP CEO Tony Hayward said he would just like to get his life back. He wants to get his life back. You know, I say give him life plus 20.” —Jay Leno

…..”Obama’s not the only one on the hot seat right now. The CEO of BP is taking a lot of flak. His name is Tony Hayward. Today, President Obama had a meeting with Hayward at the White House. It got off to the wrong start. Hayward arrived in a Hummer limo powered by baby seals.” –Craig Ferguson

A Tony Hayward doll was even marketed in the U.S.:

Modelled on BP oil spill hate figure Tony Hayward, it’s the toy no kid wants – Inaction Man.

The 12-inch doll depicts the gaffe-prone boss as jobless with a placard reading: BP Executive Needs Work.

Made by American firm Hero Builders, it sells for £22.75 and describes Hayward’s qualities as “whiny little b*tch”, and an “all around w*****”.

Toy company boss Emil Vicale said: “We don’t expect to sell any. That’s how reviled he is.”

The doll – which does absolutely nothing – is the latest insult to Hayward, 53.

Meanwhile, BP doesn’t seem to want to let go of its image as a company that isn’t above board but will say what it thinks it needs to say in a given moment – even if everyone thinks or knows it’s just saying what it thinks it needs to say:

BP Sunday refused to confirm reports that its embattled chief executive Tony Hayward is on the verge of leaving the oil giant.

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

So expect the Tony Hayward spirit to linger on at BP long after Tony Hayward has left the leaking oil well.

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