Hayward reportedly forced out as BP CEO
Embattled BP plc chief executive Tony Hayward will be replaced by the president of the company’s American division, reports indicate.
Hayward was sharply criticized for his response to the Gulf of Mexico oil spill, saying – in what may have been a stab at dry humor – that he wished he could have gotten his life back in the wake of the disaster. His remarks came as callous and harsh, though, in light of the fact that 11 workers on the Deepwater Horizon rig were killed when it exploded in late April.
More broadly, BP’s response has come under fire; the company has been tarred for not keeping the public apprised of the scale of the crisis and shunning offers of help from engineers outside the company.
And the organizational structure of BP may have had a role to play in the spill: A panel of scientists wrote that the energy giant’s culture encouraged "cost-cutting and cutting of corners – that reward workers for doing it faster and cheaper, but not better." BP was responsible for more than 750 safety violations in the years leading up to the explosion of the Deepwater Horizon.
Whether Hayward is to blame for the structural problems at BP remains up for debate. Wall Street, at least, appears to believe that sacking him would be best for the company: BP’s shares were up nearly 5 percent on the news that Hayward would receive the boot.
Robert Dudley, the American BP exec who is expected to replace Hayward, will take the helm by October 1, the Houston Chronicle reports. BP’s board is meeting Monday night and may issue a formal statement about Hayward’s firing shortly thereafter.
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