BP Gets an American Boss

I guess the American contracts are pretty important to BP, but don't feel bad for former CEO Tony Hayward:

BP's embattled Chief Executive Officer Tony Hayward will be replaced by American Robert Dudley on Oct. 1, the company said Tuesday, as it reported a record quarterly loss and set aside $32.2 billion to cover the costs of the devastating Gulf of Mexico oil spill.

BP said the decision to replace Hayward, 53, with the company's first ever non-British CEO was made by mutual agreement. In a mark of faith in its outgoing leader, BP said it planned to recommend him for a non-executive board position at its Russian joint venture and will pay him $1.6 million, a year's salary, in lieu of notice.

Britain's The Sun newspaper reported Tuesday Hayward will also receive a massive payout worth more than $20 million.

Hayward's problem was his tone-deafness with the press, not his ability as CEO. He's made BP a lot of money and will continue to do so in the Russian deal. Retaining him in a new capacity shows his value to the company and reassures the stockholders that his talents won't be just thrown away.

Though the environmentalists want him tossed out on his ear as a symbolic gesture, big business doesn't work that way.