Tony Hayward’s severance package from BP = Cha Ching!

July 27, 2010

They may be sending BP CEO Tony Hayward off to Russia but he’ll be leaving with quite the golden parachute. Today there was widespread speculation that Hayward, who become the target of national ire after BP floundered to contain the massive Gulf oil spill, will step down as chief executive of the company in October. Various outlets have reported that he will take a job with company’s joint venture in Russia. Shipped off to Russia in ignominy? That’s rough. But let’s not feel too bad for the yacht-owning executive, BBC News says that he could receive an immediate annual pension worth about £600,000 ($930,000) when he leaves his post.

The rules of BP’s pension plan say that anyone who joined the company before April 2006 can take the pension at any point from age 50 and Hayward is 53 so he’s off and spending if he chooses. He’s also set to get a year’s salary plus benefits worth more than £1 million (over $1.55 million). His total pension is valued at around £11 million (over $17 million) and he will keep his rights to shares that, depending on whether or not BP bounces back in the stock market, could also be worth millions. Hayward became the chief executive in 2007 and has been criticized for being to slow to take action on issues of safety. His statement in an interview that he “just wanted his life back” angered those whose lives were devastated by the spill. His colleague Bob Dudley is set to replace him. Dudley grew up in Mississippi and is reputed to be a safety-minded straight arrow.

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