The first two weeks of 2007 have certainly hit home that big-time CEOs are no safer than most of us. Home Depot’s CEO ouster last week started off the new year with a bang and this week closed with the earlier than early retirement of BP’s Lord John Browne. Browne is leaving in July instead of 2008 when he reaches the BP mandatory retirement age of 60. Nearly all the news reports indicate that Browne and the board mutually agreed that it was best for him to leave early and let a new CEO take on the oil major’s long reputation recovery. The decision is totally understandable and should have been no surprise as the Texas City refinery explosion task force report is expected to come out on Tuesday. The Browne departure is a thunderously loud signal that the report will be devastating to the safety culture of BP and leadership of Browne.

The question surrounding Browne is whether he will be able to recover his tarnished reputation now that his legacy is under scrutiny and damaged. The tragic deaths at Texas City refinery, Alaskan pipeline corrosion and accusations of illegal propane gas trading have all hammered BP’s once fine reputation. Three strikes and you are out certainly resonates with this unfortunate chain of events. Although Tony Hayward will now take the reins at BP in July, the recovery will not be easy. Weber Shandwick’s research shows that recovery takes three and one-half years which makes BP’s potential restoration near 2011.

One thing is clear. The “R” word will be used judiciously at BP over the next few years. They have a ways to go in reclaiming trust.

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CEO departures, Home Depot, BP, Nardelli, Lord John Browne, Texas City refinery, reputation recovery, reputation restoration, Weber Shandwick, legacy, damaged reputation, the R word
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