Awaz Apni Report: (Maryum Razzaq)
BP chief executive Tony Hayward is to leave the firm in October after sustained criticism of his handling of the Gulf of Mexico oil leak.
However, he is set to be nominated for a non-executive position on the board of the firm’s Russian joint venture with TNK, a BP source said.
No details of his financial pay-off have yet been announced.
Mr Hayward is expected to be replaced by American colleague Bob Dudley, who is in charge of the clean-up operation.
Mr Dudley was the former chief of the BP-TNK joint venture, but was forced to leave Russia in 2008 amid a dispute with shareholders.
Criticised
BP is set to reveal its latest results on Tuesday. The accounts will cover spill compensation and costs of up to £19bn, and may result in the worst quarterly loss for a UK firm.
US Oil Spill
They are also likely to discuss terms of the severance package for Mr Hayward – whose performance in the crisis has been widely criticised.
It is understood the terms of Mr Hayward’s employment entitle him to a payout of at least £1m, equivalent to a year’s salary.
At the same time, his pension pot is worth £10.8m, resulting in an annual payment of about £584,000.
Mr Hayward began his career with BP 28 years ago as a rig geologist in the North Sea before working his way up to board level. He was a popular choice for the top job when Lord Browne stepped aside in 2007.
But he will be seen to carry the can for being at the helm for the worst year in the company’s history.
Questions raised
When he became chief executive in 2007, Mr Hayward told journalists his number-one task was to focus “laser-like” on safety and reliability.
The explosion on the drilling rig off Louisiana on 20 April, which killed 11 workers and triggered the worst oil spill in the US, raised questions about his leadership.
Mr Hayward has been heavily criticised by residents of the Gulf coast and US politicians for his handling of the clean-up and for a series of gaffes, including saying that he “just wanted his life back” and that the Gulf of Mexico was a “big ocean” following the leak.
He was also taken to task for attending a sailing event off the Isle of Wight in June.
Oil-covered birds Images of environmental damage called by the spill have hurt BP’s public perception
Mr Hayward was publicly rebuked by members of the House Energy and Commerce Committee last month for “stonewalling” questions at a congressional hearing.
Journalist Tom Bower, who wrote a book called The Squeeze: Oil, Money and Greed in the 21st Century, said Mr Hayward’s departure was inevitable because he “hadn’t changed the culture” at BP following previous accidents in the US.
“He knew what had to be done, but he didn’t do it properly. He was too slow; he wasn’t inspired; he wasn’t focused enough,” said Bower.
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