60 Days into BP Oil Rig Explosion, CEO being Replaced
Friday, June 18th, 2010Several months after an oil rig exploded in the Gulf of Mexico, with drastic amounts of oil continuing to spew into the water daily, cleanup efforts continue, but the battle to contain the oil will take an unprecedented amount of time. Energy giant BP appears to be shuffling CEO Tony Hayward out of the spotlight a day after the British native roiled Congress with what critics called “evasive” testimony about the massive Gulf of Mexico oil spill from a BP well. BP Chairman Carl-Henric Svanberg said that managing director Robert Dudley will take over Hayward’s role in responding to the crisis, according to a report by U.K.-based Sky News.
The spill, however, has not ended with some 35,000 to 60,000 barrels of oil gushing into the Gulf daily, according to the latest estimates, yet Svanberg indicated that Dudley is taking over for Hayward now. Dudley is one of the few Americans in BP’s top ranks and received a total of $6.4 million in compensation last year, according to the research firm Equilar. Dudley joined BP through the merger with Amoco, which he had worked for since the late 1970s. Put in charge of tough assignments, Dudley was first charged with managing BP’s Russian joint venture earlier this decade, and is now responsible for BP’s new unit created to deal with the financial fallout of the oil spill.
BP said that Hayward, 53, will remain the company’s CEO. Last year, Hayward’s compensation totaled $14.3 million, according to Equilar.
Hayward has been the face of the oil spill and the explosion of the Deepwater Horizon oil rig, which killed 11 men and devastated Gulf shores. He has been excoriated in recent weeks not only for his role as head of the company blamed for the spill, but also for his public statements, including the now-infamous, “I’d like my life back,” a comment Hayward made while explaining his desire to quickly resolve the disaster.
On June 17, 2010, members of Congress lambasted Hayward during a hearing by the House Oversight and Investigations Subcommittee for refusing to say whether BP made dangerous and risky decisions leading up to the spill, as critics, including executives at other oil companies, have suggested.
Hayward said he would not draw any conclusions about the accident until investigations into the disaster were completed, a statement he reiterated several times throughout the hearing, much to the consternation of the congressmen questioning him.
“You’re really insulting our intelligence, with all due respect, by not giving us any answers and telling us you have to wait for some investigation,” said Rep. Eliot Engel, D-N.Y.
