BP’s share price jumped an excited 5% on Monday to reach its highest closing price since early June, as investors looked forward to ushering out chief executive Tony Hayward.
The company insisted no final decision had been made on changes to management before a board meeting on Monday evening, with second-quarter financial results due out on Tuesday. But Hayward’s place at the top table is widely expected to be filled by an American: Robert Dudley, the director of BP’s oil-response unit. As for Hayward himself, he will reportedly be nominated for a place on the board of TNK-BP – the company’s Russian joint venture (Wall Street Journal, BBC).
The Wall Street Journal’s blog notes that dumping a CEO doesn’t generally help a company boost its stock in the long run.
With the announcement of Hayward’s departure imminent, tropical storm Bonnie – which caused BP to evacuate most of its ships on Friday – has thankfully dissipated, meaning that work on permanently plugging the spill with relief wells can resume (BP press release).