A senior director at BP who had been a close associate of Lord Browne of Madingley, the former chief executive, resigned from the company yesterday. David Allen, 53, the group managing director, will leave at the end of next month, according to a company statement.
Mr Allen, who was paid a basic salary of £726,000 in 2006 – the last year for which figures are available – joined BP in 1978 and was appointed to the board five years ago after occupying a succession of senior positions. He served as chief of staff until shortly after Lord Browne’s departure last May.
Last October Mr Allen was made special adviser to Tony Hayward, BP’s new chief executive, advising on an ongoing restructuring initiative. It is understood that he will not be replaced, part of an effort to cut costs, according to a source.
Yesterday, BP insisted that his departure had been amicable and that Mr Allen was keen to pursue interests outside the company. Nevertheless, his departure will be interpreted by some as a fresh sign of Mr Hayward’s drive to clear out remnants of his predecessor’s reign.
BP is due to publish its 2007 annual results next week. They are widely expected to be sharply down on 2006 amid continued operational problems at BP. Analysts believe that annual profits will come in at about $18.8 billion (£9.5 billion), down from $22.3 billion in 2006.
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In September, Mr Hayward said that BP’s operational performance was “dreadful”. His comments were followed by unimpressive third-quarter results and investors are looking for signs of a fourth-quarter recovery. However, analysts fear that higher oil prices may have caused an unexpected rise in the group’s tax charge for the year.
On Thursday Royal Dutch Shell reported annual profits of $27.6 billion (£13.9 billion), smashing European company records.