LONDON -- Lord John Brownethe impetus behind BP PLC's Beyond Petroleum green initiativehas resigned as CEO. Brownewho was already scheduled to step down in Julytendered his immediate resignation after the lifting by the UK courts of a legal injunction preventing a newspaper group from publishing details of his private life, as well as allegations concerning misuse of company resources.
In a statement, Browne said, "In my 41 years with BP I have kept my private life separate from my business life. I have always regarded my sexuality as a personal matter, [image-nocss] to be kept private. It is a matter of deep disappointment that a newspaper group has now decided that allegations about my personal life should be made public. Concerning the court documents disclosed today, I wish to acknowledge that I did have a four-year relationship with Jeff Chevalier, who has now chosen to tell his story to [the media].
He added, "These allegations are full of misleading and erroneous claims. In particular, I deny categorically any allegations of improper conduct relating to BP."
BP chairman Peter Sutherland said that Browne had informed the company of allegations relating to the limited use by Chevalier of BP computer and staff resources. "At John's explicit request, the board instigated a review of the evidence. That review concluded that the allegations of misuse of company assets and resources were unfounded or insubstantive, said Sutherland.
"John has made it clear to the BP board that he has decided to step down with immediate effect because he does not want this public focus on his private life to detract from the paramount task of running the BP group. The board of BP has accepted John's resignation with the deepest regret. For a chief executive who has made such an enormous contribution to this great company, it is a tragedy that he should be compelled by his sense of honor to resign in these painful circumstances, he added.
The board has appointed his previously designated successor, Dr. Tony Hayward, as the new CEO.
The company said that as a result of 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 ($7 million U.S.). He would also forego inclusion in the long-term performance share plan for 2007-2009 with a maximum potential value of some 12 million ($24 million).
According to the Associated Press, Browne first joined the company in 1966 as an apprentice and worked his way up, taking the top job in 1995. He oversaw BP's expansion into the United States, involving a number of takeovers, including the 1998 merger with Amoco and the subsequent acquisitions of Arco and Castrol
But his attempts to fashion BP as an environmentally friendly oil companyhe was the first major oil company CEO to acknowledge global warming and masterminded BP's logo change from a shield to a flowerlike sunburst design the slogan "Beyond Petroleum"were undermined by the company's recent U.S. troubles. BP was forced to temporarily close some of its operations at the Prudhoe Bay oil field in Alaska because of a major pipeline spill and delayed the opening of its key Thunder Horse platform in the Gulf of Mexico. The 2005 explosion at its Texas refinery that killed 15 workers has so far cost the company around $2 billion in compensation payouts, repairs and lost profit.
Click here to view the official biography of Lord Browne.
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