Lost in the headlines about Tony Hayward's departure from the top job at BP (BP) are basic questions about BP's board of directors: What did the board know and when did the board know it?
These questions raise even more fundamental (and enduring) questions about corporate governance. How can boards effectively hold management accountable for internal and critical company processes? In the case of BP, the question is whether the board properly oversaw management's efforts to create a culture of safety and to drive key safety-management policies and procedures deep into the company's culture.
Hayward's tenure as chief executive officer is ending for obvious reasons. He mishandled events in the Gulf of Mexico after the explosion at Deepwater Horizon and committed gaffes that inflamed U.S. public opinion. If BP is to regain its business footing in the U.S., it needs a new public face.
See full Article.
Posts
