Tony Hayward

From Wikipedia, the free encyclopedia
Jump to: navigation, search
For the British journalist and author, see Anthony Hayward.
Tony Hayward
Tony Hayward - World Economic Forum on the Middle East 2008.jpg
Hayward in 2008
Born Anthony Bryan Hayward
(1957-05-21) 21 May 1957 (age 57)
Slough, Buckinghamshire, England
Residence Kent, England
Nationality British
Occupation Businessman

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 following the Deepwater Horizon oil spill.[1] He was replaced by Bob Dudley. He is named Chairman of Glencore Xstrata in May 2014. [2]

Education and early career[edit]

Tony Hayward was born in Slough, Berkshire, in 1957; the eldest of seven children. Later on, his family moved to nearby Windsor.[3] After attending the local state grammar school, he went on to gain a first class geology degree from Aston University[4] followed by a PhD from the University of Edinburgh School of Geosciences.[5] Joining BP in 1982, with his first job as a rig geologist in Aberdeen,[6] 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.[7]

In 1992, Hayward moved to Colombia as exploration manager and became president of BP's operations in Venezuela in 1995.[citation needed] In August 1997, he returned to London as a director of BP Exploration.[citation needed] 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.[citation needed]

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.[citation needed] Hayward became an executive vice-president in April 2002, and chief executive of exploration and production in January 2003.[citation needed]

Replacement of Lord Browne[edit]

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,[8] including Robert Dudley, chief executive of TNK-BP, the company's Russian joint venture, and John Manzoni, head of refining and marketing.[9][10]

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.[11] 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."[12]

On 12 January 2007 it was announced that Hayward would replace Lord Browne as BP chief executive.[13] 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.[14]

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.[15][16]

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.[17]

Negotiations with Russia's Igor Sechin[edit]

In 2008, Tony Hayward had private meetings with Igor Sechin, a close ally of Putin and a top figure of Russian military and security services, currently serving as a CEO of largest Russian oil company Rosneft. The two negotiated on BP's deals with Russia.[18][19][20]

Deepwater Horizon oil spill[edit]

Barack Obama with Tony Hayward and the BP board of directors talking about clean-up of the oil.

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.[21][22][23] By 27 May, Hayward changed his assessment, calling the spill an "environmental catastrophe" in an interview with CNN.[24]

On 12 May 2009, in a postgraduate lecture to Stanford Business School,[25] Hayward analysed the role and organisation 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.[26]

Hayward stated that his job might be at risk as a result of the spill, saying "we made a few little mistakes early on."[21] 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.[27] 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."[28] 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.[29][30] He later apologised for the comment on BP America's Facebook Page.[31][32] 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.[30][33] 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.[34] 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.[35]

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.[36] 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."[36]

In an interview on NBC on 8 June, US President Barack Obama said that Hayward "wouldn't be working for me after any of those statements",[37] referring to the remarks Hayward made following the spill.[38] The Obama administration had been public in their criticism of BP for the oil spill.[39]

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.[40] 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".[40] 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."[40]

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.[41] On 19 June, the day before Father's Day, Hayward was in Cowes – having taken a "day off" – to see Bob,[42] his co-owned boat, participate in the JP Morgan Asset Management Round the Island yacht race off the Isle of Wight.[43] 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 criticised for playing four hours of golf at the same time as the yacht race.[44][45]

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.[46]

Departure from BP[edit]

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."[47][48]

BP announced on 27 July 2010 that Hayward would be replaced by Bob Dudley as the company's chief executive effective as of 1 October 2010.[49]

CompactGTL[edit]

In March 2013, Hayward was appointed chairman at UK-based gas-to-liquids company CompactGTL.[50][51]

Ongoing protests and controversy[edit]

Hayward's involvement in Deepwater Horizon has left him a highly controversial public figure. In May 2013 he was honoured as a "distinguished leader" by the University of Birmingham, but his award ceremony was stopped on multiple occasions by jeers and walk-outs.[52]

In July 2013 his award of an honorary degree from Robert Gordon University was described as "a very serious error of judgement" by Friends of the Earth Scotland and "a sick joke" by the Student President.[53]

Other positions[edit]

Hayward was a member of the Citibank advisory board, from 2000 to 2003.[54] 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.[55] Hayward was appointed a Companion of the Chartered Management Institute in September 2005.[56]

As of 22 July 2011, it is reported that Hayward has been hired by Glencore International to oversee environment and safety.[57]

On 8 September 2011, Hayward's venture firm, Vallares, merged with the Turkish oil firm Genel Energy to create a $4.5 billion company with operations in northern Iraq.[58]

Personal life[edit]

Hayward lives in Sevenoaks, Kent.[5] His wife of 27 years, Maureen Fulton, divorced Hayward in December 2012.[59]

References[edit]

  1. ^ "BP CEO Tony Hayward to Step Down and be Succeeded by Robert Dudley". Retrieved 9 January 2011. 
  2. ^ "Former BP Chief Is Named Chairman of Glencore Xstrata". Retrieved 8 May 2014. 
  3. ^ "/ Comment / Analysis – Man in the News: Tony Hayward". Ft.com. 30 April 2010. Retrieved 28 July 2010. 
  4. ^ "Alumni News Graduation 2009". 
  5. ^ a b Cronin, Jon (12 January 2007). "Tony Hayward – BP's new boss". BBC News. Retrieved 25 May 2010. 
  6. ^ Teather, David (12 January 2007). "Profile: Tony Hayward". The Guardian (London). Retrieved 25 May 2010. 
  7. ^ Tony Hayward bio at bp.com
  8. ^ "Alexander's Gas & Oil Connections – Tony Hayward ready to take over BP after Lord Browne". Gasandoil.com. 13 February 2007. Retrieved 28 July 2010. 
  9. ^ "Who is Tony Hayward?". The Daily Telegraph (London). 12 January 2007. Retrieved 25 May 2010. 
  10. ^ MacAlister, Terry (26 July 2006). "I am going in 2008, says BP boss". The Guardian (London). Retrieved 25 May 2010. 
  11. ^ "Texas oil plant blast 'kills 14'". BBC News. 24 March 2005. Retrieved 25 May 2010. 
  12. ^ "Hayward shares candid views on 2006". The Daily Telegraph (London). 18 December 2006. Retrieved 25 May 2010. 
  13. ^ "BP's Browne to stand down in July". BBC News. 12 January 2007. Retrieved 25 May 2010. 
  14. ^ "Andy Inglis joins BP board and succeeds Tony Hayward as Head of Exploration & Production". Scandinavian Oil-Gas Magazine. 2 February 2007. Retrieved 30 May 2010. 
  15. ^ Alderson, Andrew (6 February 2010). "Ex BP chief Lord Browne says he panicked when secret gay life was about to be exposed.". London: The Telegraph. Retrieved 30 May 2010. 
  16. ^ "BP chief executive Browne resigns". BBC News. 1 May 2007. Retrieved 30 May 2010. 
  17. ^ "A. B. (Tony) Hayward Profile". Forbes.com (Forbes). Retrieved 26 June 2009. 
  18. ^ White, Gregory L. (12 June 2008). "Boardroom Brawl Roils BP's Russia Venture". Online.wsj.com. Retrieved 28 July 2010. 
  19. ^ Amsterdam, Robert (12 June 2008). "TNK-BP Is Hurting Russia". Robertamsterdam.com. Retrieved 28 July 2010. 
  20. ^ Tony Hayward lets Kremlin know that its reputation is at risk over bitter TNK-BP struggle[dead link]
  21. ^ a b Webb, Tim (13 May 2010). "BP boss admits job on the line over Gulf oil spill". London: guardian.co.uk. Retrieved 13 May 2010. 
  22. ^ "BP Doubles Estimate for Oil Captured in Gulf Spill (Update3)". bloomberg.com. 18 May 2010. Retrieved 23 May 2010. 
  23. ^ "BP Oil Spill in Gulf of Mexico Will Have 'Very Modest' Environmental Impact, Says Firm's CEO". Sky News via youtube. 18 May 2010. Retrieved 23 May 2010. 
  24. ^ "BP resumes pumping mud in attempt to cap oil well". CNN. 28 May 2010. Retrieved 24 May 2010. 
  25. ^ "Entrepreneurial Spirit Needed". Stanford Business School via Stanford University. 12 May 2009. Retrieved 27 June 2010. 
  26. ^ "Before Gulf Spill, BP CEO Tony Hayward Won Praise". National Public Radio via npr.org. 17 June 2010. Retrieved 26 June 2010. 
  27. ^ "BP's CEO Tony Hayward Takes a Walk on Oil Covered Beach". CNN via youtube. 25 May 2010. Retrieved 30 May 2010. 
  28. ^ "BP's Tony Hayward: 'I'd like my life back'". USA Today. 1 June 2010. Retrieved 1 June 2010. 
  29. ^ Graham, Nick (2 June 2010). "Rep. Charlie Melancon Calls on BP CEO Tony Hayward To Resign". The Huffington Post. Retrieved 2 June 2010. </refcref>Matthew Rothschild (2 June 2010). "How Dare Tony Hayward Say He Wants His Life Back!". The Progressive. Retrieved 30 May 2010. 
  30. ^ a b "Embattled BP chief: I want my life back". London: The Times. 31 May 2010. Retrieved 30 May 2010. 
  31. ^ "BP chief apologizes for 'I'd like my life back' comment". AFP. 2 June 2010. Retrieved 30 May 2010. 
  32. ^ Jad Mouawad and Clifford Krauss (3 June 2010). "Another Torrent BP Works to Stem: Its C.E.O.". New York Times. Retrieved 30 May 2010. 
  33. ^ "Huge oil plumes point to worse than estimated spill disaster". Calgary Herald. 16 May 2010. Retrieved 12 December 2012. 
  34. ^ Jessica Durando (31 May 2010). "BP disputes existence of underwater oil plumes". USA Today. Retrieved 30 May 2010. 
  35. ^ Vanessa Carr (2 June 2010). "Despite mounting evidence, BP doubts underwater oil plumes". PBS. Retrieved 30 May 2010. 
  36. ^ a b Jon Swaine and Robert Winnett (5 June 2010). "BP chief Tony Hayward sold shares weeks before oil spill". London: Daily Telegraph. Retrieved 5 June 2010. 
  37. ^ Goldenberg, Suzanne (8 June 2010). "'If he was working for me I'd sack him' – Obama turns up heat on BP boss". London: The Guardian. Retrieved 9 June 2010. 
  38. ^ "Gulf spill: US tests confirm big underwater oil plumes". BBC News. 8 June 2010. Retrieved 8 June 2010. 
  39. ^ (Brian Montopoli (17 June 2010). "Rep. Joe Barton Apologizes to BP's Tony Hayward for White House "Shakedown"". CBS News. Retrieved 18 June 2010. )
  40. ^ a b c James Quinn (17 June 2010). "BP oil spill: Tony Hayward 'will be spliced and diced' by US politicians". London: Daily Telegraph. Retrieved 17 June 2010. 
  41. ^ "Shake-Up at BP as Hayward Steps Back From Spill". New York Times. 18 June 2010. Retrieved 18 June 2010. 
  42. ^ Robbins, Liz (19 June 2010). "BP Chief Draws Outrage for Attending Yacht Race". New York Times. Retrieved 20 June 2010. 
  43. ^ "Yacht Race Another Gaffe by BP". News.ca.msn.com. 19 June 2010. Retrieved 28 July 2010. 
  44. ^ [1]
  45. ^ [2]
  46. ^ "BP puts Bob Dudley in key Gulf clean-up role". Associated Press via New York Post. 23 June 2010. Retrieved 12 December 2012. 
  47. ^ "Bp Oil Spill Tony Hayward's Testimony Part 23 2010–29". 17 June 2010. 
  48. ^ "Tony Hayward". 16 December 2010. 
  49. ^ "American Bob Dudley Takes Helm at BP". Sky News. 27 July 2010. Retrieved 11 November 2010. 
  50. ^ "Tony Hayward Appointed CompactGTL Chairman". pehub. Retrieved 28 March 2013. 
  51. ^ "BP's ex-boss Tony Hayward lands new energy role". Express. Retrieved 28 March 2013. 
  52. ^ Wragg, Tom (21 March 2013). "Why we disrupted Tony Hayward’s award at the University of Birmingham". Bright Green. Retrieved 21 March 2013. 
  53. ^ Cheyne, James (12 July 2013). "University defends degree for Deepwater Horizon boss Tony Hayward". STV. 
  54. ^ Citibank bio[dead link]
  55. ^ Corus Group website[dead link]
  56. ^ Tony Hayward: Group Chief Executive[dead link]
  57. ^ Tony Hayward to oversee environment and safety at Glencore
  58. ^ Discretion the Better Part of Vallares
  59. ^ Flanagan, Padraic; Perthen, Amanda (2 December 2012). "Divorce for BP chief Tony Hayward and the loyal wife who stood by him in wake of Deepwater Horizon disaster". Daily Mail (London). 

External links[edit]

Preceded by
John Browne
chief executive of BP
12 January 2007 – 1 October 2010
Succeeded by
Bob Dudley