Hayward's Gone - Scapegoat Anointed

[Gaspar]

A day after he was grilled by Congress, BP chief executive Tony Hayward is being demoted. According to Britain's Sky News, BP Managing Director Bob Dudley will take over day-to-day oversight of the Gulf of Mexico oil spill while BP's chairman Carl-Henric Svanberg (he of the "small people" comment) will assume major PR duties. (Yes, you read that right—the BP executive who famously expressed his compassion for "the small people" will be tasked with enhancing the company's public image.)

The main reason for the shift is plain enough for anyone who's been following the spill: BP executives acknowledge Hayward has blown it as the company's  face during the crisis. Svanberg, while defending the BP CEO, acknowledged the Hayward's comments have not been helpful to the company's efforts to control fallout from the disaster.

"It is clear Tony has made remarks that have upset people," Svanberg tells Sky News. "This has now turned into a reputation matter, financial and political and that is why you will now see more of me."

Oh, that guy. . . He doesn't work for us any more.

[Conan71]

Oh, and what exactly did Congress accomplish in their "grilling" and "slicing and dicing" of Hayward yesterday?  Have they stopped the leak yet?

[Gaspar]

Oh, and what exactly did Congress accomplish in their "grilling" and "slicing and dicing" of Hayward yesterday?  Have they stopped the leak yet?

If that's what they call an investigation, we're doomed.

The Republicans looked just as stupid as the Democrats. 

Fail for everyone!

Bunch of angry children puffing up their chests and trying to look cool.

Embarrassing.

[Breadburner]

I think Hayward has done a better job than Obama......

[Gaspar]

I think Hayward has done a better job than Obama......

I don't think Hayward did himself any favors last night.  He should have just got up and walked out when our congress men and women started acting like fools.  Instead he just surrendered to the moment.  I think he was ready to be relieved of his post anyway.  Let someone else deal with these fools.  He's got a few hundred million in the bank.  Time to retire.

[custosnox]

I think I saw him this morning in one of BP's PR ads that they have running.

[nathanm]

I don't think Hayward did himself any favors last night.  He should have just got up and walked out when our congress men and women started acting like fools.  Instead he just surrendered to the moment.  I think he was ready to be relieved of his post anyway.  Let someone else deal with these fools.  He's got a few hundred million in the bank.  Time to retire.

Yeah, asking questions about things like at what level in the company safety decisions were made regarding GoM wells is puffery. We must not have been watching the same hearing or something.

[Gaspar]

Yeah, asking questions about things like at what level in the company safety decisions were made regarding GoM wells is puffery. We must not have been watching the same hearing or something.

I get the feeling we see very different pictures of reality.  We should go have a beer sometime.

[nathanm]

I get the feeling we see very different pictures of reality.  We should go have a beer sometime.

We should. It would probably be easier if I lunched at lunchtime and could attend a forum lunch.

There was a bunch of nonsense at the hearings, as there always is. At times I thought certain Congresspeople were just berating Hayward to no useful purpose. The question in my mind was whether or not there was any meat on the bones of political theater. It turned out that there was some point to it. Some very interesting and relevant questions were asked and (mostly) not answered, despite Hayward being sent a list of most of the questions several days in advance.

During the hearing, I thought it was odd that it seemed to puzzle the committee members that Hayward claimed to have no detailed knowledge of the well. After all, I'm sure BP drills thousands of wells every year. A CEO ought to be handling the big picture, not engineering details. It occurred to me later that a CEO probably ought to be more interested in an wildcat tapping a rather large new reservoir given the higher than usual risk and reward involved. After all, if my arithmetic is correct, the Macando well would have cost them about 1.5% of their entire yearly cash flow (or about 2.3% of total "expenses") had it not blown out.

Not exactly an insignificant detail, that.

[Red Arrow]

A CEO ought to be handling the big picture, not engineering details.

One of the risks of being a CEO, you have to trust the staff below you but you still bear the ultimate responsibility.  That's one reason for the big $. A CEO that micro manages engineering will send him/her self to an early grave.

[nathanm]

One of the risks of being a CEO, you have to trust the staff below you but you still bear the ultimate responsibility.  That's one reason for the big $. A CEO that micro manages engineering will send him/her self to an early grave.

I agree completely with that. Sometimes it isn't fair, but as you said, that's why they get the big bucks; I'll also invoke the golden parachutes.