Tuesday, 25 January 2011

BP CEO Hayward Facing Board Vote Today

BP is likely going to remove Tony Hayward from his post as CEO of the company as a result of the ongoing problems with the drill spill in theGulf of Mexico. Hayward handled the situation clumsily from the start and his comments and behavior has often drawn the ire of the U.S. media and those affected most directly by the disaster. Since Congressional hearings in the weeks following the revelation that the spill was much larger than originally reported, Hayward has maintained a very low profile with very few public comments. He was ultimately replaced in his direct role overseeing clean-up and containment efforts by Bob Dudley, who is expected by many to be named the new CEO of BP.

The timing of the change at the top of BP is appropriate. Second quarter earnings are expected to be announced tomorrow and the spill in the Gulf is currently capped, awaiting the arrival of the first relief well that the company claims should seal the well permanently. Hayward's fate, it appears, was permanently sealed when he was replaced by Dudley as the face of BP in regards to the spill.

If, in fact, Hayward is replaced at the top, there is the potential that the new CEO could come in at a time of recovery for the company. If the well is sealed in the next few weeks and the focus moves exclusively to clean-up efforts, the new CEO could guide BP through a rebuilding of its public image in the eyes of the American people. In addition to clean-up efforts, BP will also have the opportunity to begin making significant financial reparations for the damage it has caused.

A new CEO in place to lead BP through these steps will help to reinforce the idea that the company is making a concerted effort to right its many wrongs. And while the announcement of a new CEO while under duress is never a good thing, it could represent a great opportunity for BP to begin its long road to recovery with some positive momentum.

By Buzzle Staff and Agencies
Published: 7/26/2010
Oil Spills in the Ocean