Hayward in 2008
|Born||Anthony Bryan Hayward
21 May 1957
Slough, Buckinghamshire, England, UK
|Residence||Kent, England, UK|
Anthony Bryan "Tony" Hayward (born 21 May 1957) is a British businessman, the former chief executive of oil and energy company BP. He replaced John Browne, Baron Browne of Madingley on 1 May 2007. His tenure ended on 1 October 2010 due to his weak management of the Deepwater Horizon oil spill. He was replaced by Bob Dudley.
Education and early career
Tony Hayward was born in Slough, Buckinghamshire, in 1957; the eldest of seven children. Later on, his family moved to nearby Windsor. After attending the local state grammar school, he went on to gain a first class geology degree from Aston University followed by a PhD from the University of Edinburgh School of Geosciences. Joining BP in 1982, with his first job as a rig geologist in Aberdeen, he quickly rose through the ranks in a series of technical and commercial roles in BP Exploration in London, Aberdeen, France, China and Glasgow. Hayward first came to Lord Browne's attention during a 1990 leadership conference in Phoenix, Arizona. As a result, he was made Browne's executive assistant.
In 1992, Hayward moved to Colombia as exploration manager and became president of BP's operations in Venezuela in 1995. In August 1997, he returned to London as a director of BP Exploration. He became group vice president of BP Amoco Exploration and Production as well as a member of the BP group's Upstream executive committee in 1999.
Hayward was appointed BP group treasurer in September 2000 where his responsibilities included global treasury operations, foreign exchange dealing, corporate finance, project finance and mergers and acquisitions. Hayward became an executive vice president in April 2002, and Chief Executive of exploration and production in January 2003.
Replacement of Lord Browne
In light of safety and resultant production issues in Alaska and the report on the explosion at the Texas City refinery, Peter Sutherland, BP's non-executive chairman, accelerated the process for replacing Lord Browne, bringing the timetable forward from end-2008 (when Browne would be 60, and nominally forced to retire under BP's rules) to July 2007. Hayward, having been termed CEO designate by both internal and media commentators, came to the fore amid the competition, including Robert Dudley, chief executive of TNK-BP, the company's Russian joint venture, and John Manzoni, head of refining and marketing.
On 18 December 2006, in the run-up to replace Lord Browne as Chief Executive of BP Group, the Financial Times reported that Hayward had criticised BP's management at an internal management meeting, in the wake of a blast at the firm's Texas City refinery that killed 15 people and injured more than 170 others. Hayward made the comments at a town hall meeting in Houston: "We have a leadership style that is too directive and doesn't listen sufficiently well. The top of the organisation doesn't listen sufficiently to what the bottom is saying."
On 12 January 2007 it was announced that Hayward would replace Lord Browne as BP Chief Executive. In preparation for Hayward's take up as Group CEO, on 2 February Andy Inglis was appointed managing director of the BP Group, and succeeds Hayward as chief executive of BP's Exploration & Production (E&P) business.
Hayward was appointed to the Chief Executive position with immediate effect on 1 May 2007, after Lord Browne resigned following the lifting of a legal injunction preventing Associated Newspapers from publishing details about his private life.
BP was paying Hayward an annual salary of £1,045,000; his 2008 bonus was £1,496,000 and in 2009 his bonus was £2,090,000.
Negotiations with Russia's Igor Sechin
Deepwater Horizon oil spill
On 20 April 2010, an explosion occurred on the Deepwater Horizon oil rig, operated by BP. Eleven people were killed in the blast and oil began to leak from the ocean floor at a rate variously estimated to be between 5,000 barrels (790 m3) and 100,000 barrels (16,000 m3) per day. Hayward, and BP in general, initially downplayed the spill, stating on 17 May 2010 that the environmental impact of the Gulf spill would likely be "very very modest" and calling the spill "relatively tiny" in comparison with the size of the ocean. By 27 May, Hayward changed his assessment, calling the spill an "environmental catastrophe" in an interview with CNN.
On 12 May 2009, in a postgraduate lecture to Stanford Business School, Hayward analyzed the role and organization of the company for which he acted as Chief Executive Officer. During the lecture he stated to the business students that "...our primary purpose in life is to create value for our shareholders. In order to do that you have to take care of the world." Subsequent statements that focused only on the individual corporate remit have also been quoted outside the context of the full lecture.
Hayward stated that his job might be at risk as a result of the spill, saying "we made a few little mistakes early on." He received criticism for various statements he has made during the spill, including telling a camera man to "get out of there" during a photo-op on the shores of Louisiana. On 30 May, he told a reporter "we're sorry for the massive disruption it's caused to their lives. There's no one who wants this thing over more than I do, I'd like my life back." He was widely condemned for his comment which was perceived as selfish, and United States Representative Charlie Melancon (D-La.) called on Hayward to resign in the wake of this comment. He later apologized for the comment on BP America's Facebook Page. On 31 May, Hayward disputed claims of huge underwater plumes of oil suspended in the Gulf, as had been reported by scientists from three universities. Hayward said there was "no evidence" that plumes of oil were suspended under the sea, and that because it is lighter than water any plumes seen are just in the process of rising to the surface. A chemist from Louisiana State University agreed with this assessment. Still other scientists have suggested that the manner of expulsion of the oil from the well and the use of dispersants may have led to an emulsion situation in which the oil is suspended in water for some time.
On 5 June the Daily Telegraph reported that Hayward sold approximately one third of his shares in BP a month before the Deepwater Horizon rig exploded. The shares subsequently fell in value by 30%, although the Telegraph stated: "There is no suggestion that he acted improperly or had prior knowledge that the company was to face the biggest setback in its history."
In an interview on NBC on 8 June, U.S. President Barack Obama said that Hayward "wouldn't be working for me after any of those statements", referring to the remarks Hayward made following the spill. The Obama administration had been public in their criticism of BP for the oil spill.
Before a congressional hearing on the oil spill held on 17 June, subcommittee chairman Bart Stupak of Michigan said that he expected Hayward to be "spliced and diced" by both himself and other committee members. Hayward's eleven-page document that he read to the committee included a passage in which he said he would "pledge as leader of BP that we will not stop until we stop this well ... and address economic claims in a responsible manner". He continued, "This is a complex accident, caused by an unprecedented combination of failures. A number of companies are involved, including BP, and it is simply too early to understand the cause."
On 18 June, the day after Hayward appeared before the congressional hearing, the chairman of BP said that Hayward would step away from daily involvement in the company's efforts in the Gulf. On 19 June, the day before Father's Day, Hayward was in Cowes – having taken a "day off" – in order to see Bob, his co-owned boat, participate in the JP Morgan Asset Management Round the Island yacht race off the Isle of Wight. Rahm Emanuel, President Obama's chief of staff, said that Hayward had committed yet another in a "long line of PR gaffes" by attending the race while the Gulf oil spill continued. Obama was also criticized for playing four hours of golf at the same time as the yacht race.
In June, BP put Mississippi native Bob Dudley in charge of handling the Gulf of Mexico oil spill. Dudley was appointed president and chief executive of the newly created Gulf Coast Restoration Organization, reporting to Hayward.
Departure from BP
Following the oil spill, there were rumours that Hayward would resign, but the company dismissed these. A BBC report said that a BP press release stated that Hayward "has the full confidence of the Board of Directors of BP."
Hayward was a member of the Citibank advisory board, from 2000 to 2003. Hayward is presently senior independent non-executive director of Corus Group, appointed in April 2002, and a non-executive director of Tata Steel. Hayward is a committee member of Audit, Nominations and Health, Safety and Environment. Hayward was appointed a Companion of the Chartered Management Institute in September 2005.
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- Citibank bio[dead link]
- Corus Group website[dead link]
- Tony Hayward: Group Chief Executive[dead link]
- Tony Hayward to oversee environment and safety at Glencore
- Discretion the Better Part of Vallares
- Biography at BP.com[dead link]
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- Interview with CNN on the 2010 Gulf of Mexico oil spill
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- Grilled by Lawmakers, Tony Hayward Denies BP Recklessness Led to Gulf Oil Disaster - video report by Democracy Now!
|Chief Executive of BP
12 January 2007 – 1 October 2010