1st May 2007 15:39
BP PLC01 May 2007 press release May 1, 2007 BP APPOINTS TONY HAYWARD AS CHIEF EXECUTIVE AS LORD BROWNE STEPS DOWN Following a decision taken today by Lord Browne to step down as the company'schief executive officer, the Board of BP p.l.c. has appointed his designatedsuccessor, Dr Tony Hayward, as new CEO with immediate effect. Lord Browne tendered his resignation after the lifting by the UK courts of alegal injunction preventing a newspaper group from publishing details of hisprivate life. Lord Browne said: "In my 41 years with BP I have kept my private life separatefrom my business life. I have always regarded my sexuality as a personal matter,to be kept private. It is a matter of deep disappointment that a newspaper grouphas now decided that allegations about my personal life should be made public. "Concerning the court documents disclosed today, I wish to acknowledge that Idid have a four-year relationship with Jeff Chevalier who has now chosen to tellhis story to Associated Newspapers, publishers of The Daily Mail, Mail on Sundayand Evening Standard. "These allegations are full of misleading and erroneous claims. In particular, Ideny categorically any allegations of improper conduct relating to BP." BP chairman Peter Sutherland said that Lord Browne had informed the company ofallegations relating to the limited use by Jeff Chevalier of BP computer andstaff resources. Mr Sutherland said: "At John's explicit request, the Board instigated a reviewof the evidence. That review concluded that the allegations of misuse of companyassets and resources were unfounded or insubstantive. "John has made it clear to the BP Board that he has decided to step down withimmediate effect because he does not want this public focus on his private lifeto detract from the paramount task of running the BP group. "The Board of BP has accepted John's resignation with the deepest regret. For achief executive who has made such an enormous contribution to this greatcompany, it is a tragedy that he should be compelled by his sense of honour toresign in these painful circumstances." Note to editors: • The company said that as a result of Lord Browne's decision to resign he would lose his agreed entitlement to a year's notice including a bonus of up to 1.3 times his annual salary, worth in total over £3.5 million. He would also forego inclusion in the long-term performance share plan for 2007-2009 with a maximum potential value of some £12 million. • Below is the full personal statement issued by Lord Browne today. Personal statement by Lord Browne of Madingley "For the past 41 years of my career at BP I have kept my private life separatefrom my business life. I have always regarded my sexuality as a personal matter,to be kept private. "It is a matter of personal disappointment that a newspaper group has nowdecided that allegations about my personal life should be made public. "Legal documents have been disclosed today containing allegations about me andmy personal life. I wish to acknowledge that I did formerly have a four-yearrelationship with Jeff Chevalier. He has made these allegations about me and ourrelationship to Associated Newspapers, publishers of The Daily Mail, Mail onSunday and Evening Standard. "The allegations are full of misleading and erroneous claims. I denycategorically any allegations of improper conduct relating to BP. The companyhas confirmed today that it has found no such wrongdoing. "My initial witness statements, however, contained an untruthful account abouthow I first met Jeff. This account, prompted by my embarrassment and shock atthe revelations, is a matter of deep regret. It was retracted and corrected. Ihave apologised unreservedly, and do so again today. "These allegations will result inevitably in considerable media attention forboth myself and BP. What matters to me is BP, what we have achieved during mytenure and the bright future ahead. "I have therefore informed the Board of BP that I intend to stand down as groupchief executive with immediate effect, rather than retiring at the end of July.This is a voluntary step which I am making to avoid unnecessary embarrassmentand distraction to the company at this important time. "I have spent my entire working life with BP, and want to thank everyone fortheir dedication, loyalty, support and hard work in creating one of the world'sfinest companies. "I shall not be commenting on my personal issues further. I wish to pursue mypersonal life in private." - ENDS - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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