Updated to include news latest details on Tony Hayward, BP CEO replacement plan after BP board meeting LONDON ( TheStreet) -- BP's ( BP) board will name managing director Bob Dudley as its new CEO replacing Tony Hayward, effective October, according to reports coming out after the BP board meeting on Monday evening in London. The AP reported that Hayward was seen speeding away in a silver Lexus without speaking to reporters after leaving the board meeting. Reports began surfacing on Sunday about the departure of Hayward, and described the BP CEO transition plan as a "mutual" decision between Hayward and the company. Hayward may stay with BP and run its TNK-BP Russian operations, according to reports from the AP and British news services. It would be an ironic twist, as Dudley ran the Russian arm of BP for several years. Several reports, including the AP report, indicate that Hayward has been offered a job on the board of TNK-BP. BP wouldn't confirm its plans to replace Tony Hayward with Dudley, or any of the details of the board decision-making process. BP issued a press release on Monday saying that no final decision had been made about potential management changes, and a BP spokesman declined to comment specifically on Hayward's status.
Even with anonymous sourcing, the reports of Tony Hayward's exit from BP are being accepted as a fait accompli, and the only open questions the terms of his departure and the timing of the transition to a new CEO. It has been the expectation of most BP watchers that Hayward would be replaced, but that it wouldn't happen until the oil spill was under control. Congressman Ed Markey (D-Mass.), one of the congressional point people on the BP oil spill, released a statement on Sunday, saying, "While it's now happy sailing for Tony Hayward, rough conditions will persist in the Gulf of Mexico for years to come because of his failed leadership. The new leaders of BP will have an uphill climb to correct the legacy left by Hayward, indelibly inked by the disaster in the Gulf." Under the reported plan, Dudley, who is a member of BP's board and as managing director oversees the company's operations in Asia and the Americas, would take the CEO's reins on Oct. 1, allowing for a two-month transition period, the report said. Hayward would stay on the BP board until the end of the year, the report added. Hayward has been harshly criticized for his handling of the catastrophic oil spill in the Gulf of Mexico that followed the explosion of BP's Deepwater Horizon drilling rig in April. Hayward's public gaffes, from a series of quotes he and BP would like to have back, to his infamous yacht race attendance during the worst of the oil spill crisis, have become staples for attacks from the press and public. Most infamously, Hayward became a lightning rod for public attacks after saying he wanted his life back during the oil spill crisis. As political pressure mounted on the federal government to show it was not helpless to take control of the oil spill, President Obama was even quoted as saying that he would have fired Tony Hayward. Hayward earned $1.6 million in salary in 2009, and more than $4 million with bonuses. As of the end of 2009, Hayward also had $16.8 million in his pension account. The Sunday Times reported that Hayward will collect $18 million upon his departure from BP, equal to a year of salary and the pension. The BBC reported that Hayward's pension plan would equal close to $1 million per annum, and he would not be forced to relinquish BP shares held as part of a long-term incentive plan. BP will release earnings on Tuesday, and according to an analyst reports, may cite oil spill liabilities of $30 billion. BP declined to comment on specific numbers on Monday, but even at $30 billion, any BP oil spill liability estimate released with its earnings could come in on the low side of estimates. Market projections for BP's oil spill liabilities range anywhere from $20 billion to $100 billion. The most commonly referenced estimate is a $37 billion estimate from Credit Suisse. Accounting standards mandate that BP provide an estimate for its liabilities, but the accounting rules provide leeway for a company to provide a "reasonable" estimate that could be on the low side of the final tally. Barclays Capital estimated the BP second quarter loss at $13 billion, according to a report in the Sunday Times, which would be the worst quarterly loss in British corporate history. BP has been spending up to an estimated $67 million per day in its oil spill cleanup and containment effort. In the first days of the oil spill response, BP estimated that it was spending $6 million to $7 million per day, a figure that later rose to an estimated $33 million per day. As of last week, BP had surpassed the $4 billion mark in its stated oil spill cleanup and containment costs. -- Written by Eric Rosenbaum in New York