Hayward to get £600k annual pension payment

BP chief executive Tony Hayward will get an immediate annual pension worth about £600,000 (€715,000) when he leaves in October, it has been reported.

He will also receive a year’s salary plus benefits worth more than £1 million (€1.2m).

Hayward’s pension pot is valued at about £11m (€13m) and he will keephis rights to shares under a long-term performance scheme which could eventually be worth several million pounds.

BP is expected to install American Bob Dudley as chief executive, sources close to the company said, replacing Hayward who has come under fire for his gaffe-prone handling of the worst oil spill in US history.

Hayward will be offered a board role within the group’s Russian joint venture when he stands down, it was reported yesterday.

The oil giant was expected to confirm his resignation from the top job following a board meeting, and offer Hayward a non-executive directorship at TNK-BP in Russia, according to Sky News.

The move could mean the beleaguered chief executive’s 28-year career with BP is not brought to a complete halt.

Shares in BP closed 5% higher as investors cheered the prospect of a change at the helm following the Gulf of Mexico oil disaster.

The firm declined to comment on the reported offer of a Russian role for Hayward and said “no final decision” had been taken on his future.

But his fate was expected to be sealed at last night’s board meeting and confirmed today alongside provisions running into tens of billions of dollars for the Gulf of Mexico spill, which has triggered the worst crisis in the company’s long history.

Hayward has led the firm since 2007 but has committed a string of PR blunders since the crisis began in April and was reportedly negotiating his departure over the weekend.

Fellow board member and US citizen Bob Dudley – currently in charge of the clean-up operation – is the favourite to take over, becoming BP’s first foreign chief executive.

Dudley was previously head of the Russian operation, but fled the country after a dispute flared up with the firm’s Russian partners.


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