The Fall of BP’s Head: The End of Impunity

The awaited dismissal of Tony Hayward, the head of BP, signals the end of the era of impunity for heads of multinational companies. The captain of industry, who directed the premier British company since 2007, paid for his arrogance toward the oil slick caused by the explosion that, on April 20, destroyed the Deepwater Horizon platform in the Gulf of Mexico.

“I’d like my life back,” he said some days after the catastrophe. The lack of seriousness on the part of this geologist — who built his entire career at BP — in the face of the 11 deaths caused by the explosion and the soiling of the Gulf Coast appalled the media, politicians and U.S. public opinion. His refusal to assume any responsibility at his congressional hearing made Tony Hayward the most hated man in the United States, where the company holds the majority of its assets. The director general of BP has stuck to discussing technical and legal issues, giving in to what appears to be the typical temptation: denial of the reality or the gravity of the issue.

Like Thierry Desmarest, the head of Total, in the sinking of the Erika in 1999, or Goldman Sachs’ CEO and Chairman Lloyd Blankfein during the 2008 financial crises, Tony Hayward has been incapable of any act of contrition. Obsession with being the biggest creates a superiority complex among a good number of top executives. Giving excuses creates an image of vulnerability and incompetence that is incompatible with power. Locked away in their bunkers and immersed in a tight-lipped industry culture based on partisanship and elitism, these strong and often brilliant characters have trouble making sense of the ambiguity of public sentiment toward them: a mix of fascination and exasperation. They hold to the image of infallibility that they themselves too often paint. This creates the terror of class action lawsuits — group claims — thanks to which victims can come together to better enforce their rights.

The most sophisticated media plans put in place by BP have shown their limits. The premier British enterprise has taken no measure to respond to this national media upheaval. This media attack dog has been taking turns with a crowd of politicians who transform little nothings into national drama: In the age of the Internet, this old antenna is out of style.

Investors and financial entities no longer benefit from the big newspapers controlled by “com” experts. In order to stay informed, one must consult the blogosphere, whose impact BP has underestimated. Anonymously, bankers, traders and other fund managers have placed all the truths about BP — that have not been very good — on these sites. Tony Hayward is leaving because of this environment, too.