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Paul Anderson
New contender: the former BHP Billiton and Duke Energy chief executive Paul Anderson is in the frame to take over as chairman of the oil giant

A new name in the frame as BP struggles to fill the top job

Robert Lea
15 Jun 2009


Investors might begin to wonder whether it has become the most poisoned chalice in British business: the chairmanship of BP, the job that apparently nobody wants.

Another weekend and another name appeared in the frame for a job which has been appearing in headhunters' situations vacant columns for the last two years.

American energy and commodities veteran Paul Anderson, a sometime chief executive of Australian miner BHP Billiton and Duke Energy of the US, is the latest to be touted as the man who might get the job.

Chief executive Tony Hayward has promised an appointment by the end of July.

But the word from those who know BP processes well is that speculation about Anderson should be read as that he is one of the frontrunners for the job rather than the favourite.

BP is refusing to comment on whether Anderson is a frontrunner or indeed if there any other frontrunners.

The successful candidate - assuming that eventually there is one - will be walking into a certain unpleasantness.

There was a sizeable institutional shareholder revolt at the company's recent annual meeting ostensibly over the remuneration package of Hayward and his fellow executives, though it was seen more as a verdict on how investors feel they have been treated by BP.

Previous "frontrunner" candidates for the £600,000 a year chairmanship have included Paul Skinner of Rio Tinto. However, plans in the spring to install him were shot down by City investors.

Other issues a new chairman will face include the search for a coherent strategy for the 21st century and the safeguarding of the dividend.

BP chairman Peter Sutherland who has been in the post for 12 years was supposed to have left months ago. His departure was delayed by a messy boardroom split with previous chief executive Lord Browne and then the even messier departure of Browne amid a perjury scandal over the BP boss's gay lover.

But with Hayward in situ now for the last two years that excuse for failing to find a Sutherland replacement is no longer relevant.

City bookie BGC Partners has included the likes of Lord Mandelson and Digby Jones in its list of potential runners and riders. It is not certain whether the bookie is being serious.

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