Monday, June 7, 2010

Another BP Story That Makes You Go Hmmmmm....

BP chief Tony Hayward sold 1/3 of his BP holdings weeks before the Gulf oil spill.

Yeah, you heard that right.

The chief executive of BP sold £1.4 million of his shares - that was 1/3 of his holdings - one month before the Gulf of Mexico oil spill caused its value to collapse.
Mr Hayward, whose pay package is £4 million a year, then paid off the mortgage on his family’s mansion in Kent, which is estimated to be valued at more than £1.2 million.

There is no suggestion that he acted improperly or had prior knowledge that the company was to face the biggest setback in its history.

His decision, however, means he avoided losing more than £423,000 when BP’s share price plunged after the oil spill began six weeks ago.

Since he disposed of 223,288 shares on March 17, the company’s share price has fallen by 30 per cent. About £40 billion has been wiped off its total value. The fall has caused pain not just for BP shareholders, but also for millions of company pension funds and small investors who have money held in tracker funds.

So before this spill happened, both the CEO AND Goldman Sachs dumped some major holdings.

Sure sounds fishy.