Hayward makes ‘life isn’t fair’ parting shotsuccessor promises recovery

I was demonised, says boss as BP plunges into the red

By Ian Forsyth

Published: 28/07/2010

BP chief executive Tony Hayward headed for the exit door last night claiming he had been “demonised and vilified” in the wake of the Gulf of Mexico disaster.

He spoke out as his successor pledged to put the oil giant on the road to recovery as it reeled under a £20.8billion blow from the spill.

BP dived £11billion into the red in the April-June quarter following the Deepwater Horizon tragedy – its first financial loss for 18 years.

Mr Hayward, who will make way in October for US citizen and fellow board member Bob Dudley, said he had no major regrets about leading BP since 2007, adding that his decision to leave was a purely practical one.

He said: “This is a very sad day for me personally. Whether it is fair or unfair is not the point. I became the public face of the disaster and was demonised and vilified.

“BP cannot move on in the US with me as its leader.

“Life isn’t fair – sometimes you step off the pavement and get hit by a bus.”

Mr Dudley, BP’s first chief executive from overseas, said he did not underestimate the task ahead but insisted he company was “financially robust” and had “enviable” assets and staff.

“I believe this combination – allied to clear, strategic direction – will put BP on the road to recovery,” he said.

The huge charge for the oil disaster includes the direct costs of tackling the spill, cleaning up the catastrophe and a £12.9billion compensation fund agreed in June.

But the longer-term fall-out such as fines, penalties and potential legal action will inevitably add to the bill and spread the pain over a number of years.

BP hopes to sell more than 10% of its production assets over the next 18 months, raising up to £19.3billion to beef up its balance sheet to meet the cost of the crisis.

The oil and gas giant’s North Sea business is expected to escape from the disposal largely unscathed.

Meanwhile, Mr Hayward, who has been criticised for a series of PR blunders since the crisis began, leaves with a pay-off of one year’s salary – £1.045million – and an £11million pension pot.

He will remain on the BP board until the end of November and has been put forward as a non-executive director of the firm’s TNK-BP Russian joint venture.

BP’s chairman Carl-Henric Svanberg said the firm was “deeply saddened” to lose Mr Hayward but said the rig explosion – which left 11 workers dead – had been a “watershed incident”.

“It will be a different company going forward, requiring fresh leadership supported by robust governance and a very engaged board,” Mr Svanberg said.

Edinburgh University graduate Mr Hayward joined BP in 1982, starting as a rig geologist in Aberdeen.

He rose quickly through the ranks in a series of technical and commercial roles in BP Exploration in the north-east, London, Glasgow, France and China, and remains fond of the Granite City.

In 2005 he told the Press and Journal that BP would remain in the north-east until the final drop of oil was extracted from the North Sea.

He has been chief executive since 2007. Before the spill he had been credited with reviving the fortunes of the offshore giant but said he would always feel a “deep responsibility” for the disaster.

“The Gulf of Mexico explosion was a terrible tragedy for which – as the man in charge of BP when it happened – I will always feel a deep responsibility, regardless of where blame is ultimately found to lie,” he said.

“BP will be a changed company as a result and it is right that it should embark on its next phase under new leadership.”

Mr Hayward said BP had reached a “significant milestone” after the capping of the spewing well.

BP shares fell 3% yesterday to 406p. Investors are awaiting the completion of relief wells below the seabed which should finally cut off the flow of oil early next month.

BP is a staple holding for UK pension funds, although shareholders have already felt the pain after the firm scrapped dividends for the first time since World War II. They must wait until 2011 to find out when dividend payments will resume.

Reader's Comments

life is not fair Hayward said, i know plenty of people who have carried the blame for something that has gone wrong and they have been Sacked, the difference is Hayward will not lose any money and will walk into another job with BP or who ever.Do not feel sorry for this guy they are all well protected and well paid.
bob seivwright
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bob seivwright
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FAR TOO WELL PAID.. In relation to how they rip us off for our fuel...
Lord Lucan
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Notice it is an American that gets his job though. Coincidence??? Yes Hayward will get well compensated, but does that really make up for being the fall guy. I am sure there were plenty of Americans working on that rig so just who is to blame for the leak. Always when it comes to the Americans, there are too may ifs and buts and coincidences.
minnie mo
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ive worked in the gulf of mexico on a drilling rig, as derickman , on the drill floor, the rig is run by the rig crew, theres a comapny man in charge of there operations, and third party personel doing there jobs, so of the 110 or so on the rig , the client (BP) would account for less than 5% of the crew. the blow out priventer THAT FAILD was TRANSOCIANS. at a enquiery into the deaths of the 11 men , a transotion employee has admited that the energancy cut out sistem alarm had been disconected, as it was going of intermitantly , and was waking personel at all hours,that is from the guardian , you can check it yourself! SO WHERE IS THE TRANSOCIAN BLAME IN THIS? WHY IS IT BP THATS TAKING ALL THE BLAME! I HAVE WORKED ALL OVER THE WORLD, AND THE GULF OF MEXICO IS THE MOST DANGEROUS PLACE I HAVE WORKED, AND AS I AN SHURE ,THE READERS THAT YOU HAVE THAT HAVE WORKED IN THE NOTH SEA WILL BEAR TESTIMONT, AMERICANS ARE THE MOST DANGEROUS MEN TO WORK WITH! they have a pusher mentality n think you just shout at things and they get done! in the north sea we have done alot to stop this ,but in there own waters this is just as bad as it was hear 20 years ago
david ross
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David, I suspect that B.P. will take the brunt of all the flack at the moment to pacify the American Government, and those directly suffering from this incident, but once their legal people get in to all the hard facts, I think they will start to take legal action against the various companies that are also co- responsible. Most of them will be American and some will also have connections with various senators that will try to hide their connections "under the carpet"
Lord Lucan
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BP chief executive Tony Hayward headed for the exit door last night claiming he had been “demonised and vilified” in the wake of the Gulf of Mexico disaster. Was he demonised by his redundancy package, I would not mind being demonised and being in receipt of a redundancy package like his, most working people who make a minor mistake are fired and get no redundancy package, and may have difficulty securing other employment. This redundant PB Chief Executive will have no financial difficulties for the rest of his life, and at least 100 corrupt Companies will be queuing up at his door offering him further lucrative employment, and a fantastic salary package, and of course a fantastic Pension and redundancy package again.
dylan dougal
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