BP chief Tony Hayward 'set to stand down'

BP's chief executive Tony Hayward is expected to stand down following widespread criticism of his handling of the Gulf of Mexico oil spill. He is likely to be replaced by his American colleague, Bob Dudley, who has taken charge of the clean-up operation, reports BBC News.

BP's board are to sign off accounts, which will cover spill compensation and costs of up to £19bn, and may result in the worst quarterly loss for a UK firm. They are also likely to discuss terms of Mr Hayward's severance package.

A BP spokesman maintained Mr Hayward continued to have the "full support of the board and senior management" but a US government official quoted by the Associated Press, said senior figures in the company had already briefed them about a change of leadership at the oil multinational.

It is believed the terms of Mr Hayward's employment entitles him to a payout of at least £1m. Meanwhile, the Daily Telegraph is reporting his pension pot could be as much as £10.8m, resulting in an annual payment of about £584,000.

An engineer by training, Mr Hayward spent the past 28 years with BP and was a popular choice for the top job when Lord Browne stepped aside in 2007.

But he will be seen to carry the can for the being at the helm for the worst year in the company's history.