BP Lord Browne's Immediate Resignation on Losing Court Battle due to Lieing to the Court

By: Phillipa_Green

In surprising and shocking news earlier today, Lord Browne announced his immediate resignation as BP's Chief Executive. Following the lifting of the court injunction which prevented Associated Newspapers from printing details concerning Lord Browne's private life.

The judge Justice Eady criticised Lord Browne for lieing at the initial injunction hearing concerning the newspaper allegations in January 2007.

The resignation will cost Lord Browne the lucrative share and bonus incentive plan estimated at much as £20 millions. The retirement plan was passed by institutional shareholders at Aprils AGM, and was heavily criticised at the time by many shareholders. BP's Browne steps down with £60 million plus Golden Handshake (12th April 07).

BP was little changed on the news, some 2p lower at 563p, in line with the performance of the broader market.

Lord Browne's full statement :"For the past 41 years of my career at BP I have kept my private life separate from my business life. I have always regarded my sexuality as a personal matter, to be kept private.

It is a matter of personal disappointment that a newspaper group has now decided that allegations about my personal life should be made public.

Legal documents have been disclosed today containing allegations about me and my personal life.

I wish to acknowledge that I did formerly have a four-year relationship with Jeff Chevalier.

He has made these allegations about me and our relationship to Associated Newspapers, publishers of The Daily Mail, Mail on Sunday and Evening Standard.

The allegations are full of misleading and erroneous claims.

I deny categorically any allegations of improper conduct relating to BP.

The company has confirmed today that it has found no such wrongdoing.

My initial witness statements, however, contained an untruthful account about how I first met Jeff.

This account, prompted by my embarrassment and shock at the revelations, is a matter of deep regret. It was retracted and corrected.

"I have apologised unreservedly, and do so again today.

These allegations will result inevitably in considerable media attention for both myself and BP. What matters to me is BP, what we have achieved during my tenure and the bright future ahead.

I have therefore informed the Board of BP that I intend to stand down as group chief executive with immediate effect, rather than retiring at the end of July.

This is a voluntary step which I am making to avoid unnecessary embarrassment and distraction to the company at this important time.

I have spent my entire working life with BP, and want to thank everyone for their dedication, loyalty, support and hard work in creating one of the worlds finest companies.

I shall not be commenting on my personal issues further. I wish to pursue my personal life in private."

By Phillipa Green

(c) MarketOracle.co.uk 2005-2007

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