Warren Buffett Feels Hayward Should Not Continue As BP CEO

In an article on CNBC, Warren Buffett of Berkshire Hathaway (NYSE: BRK.B) said that Tony Hayward should resign from the post of the CEO of BP PLC (NYSE: BP). This will make American people feel that the company has responded adequately to its massive oil spill in the Gulf.

In an interview with Willow Bay for the Huffington Post and Yahoo News, Buffet said that Hayward’s continuation as the CEO is not in the interest of the company and the US. According to Buffet, President Obama’s handling of the Gulf crisis was less than “perfect,” in terms of public opinion. Buffet, however, acknowledges that the extent of oil spilling into the Gulf would not have been reduced even if Obama had "raged and stormed and stomped his feet and held his breath on the first day."

On Bay asking Buffet on what he would have done if BP were one of his companies and CEO Hayward was working for him, Buffet said, “He probably wouldn't. I'm not sure what fault he has to play in it, but when you have something with that impact on society, it's like the captain of the ship. They're responsible even though some second lieutenant may have made all the mistakes. But, it's not in BP's interest to actually continue with him as CEO. And I don't know him personally. He may be the most wonderful guy in the world, but it is not in their interest, and not in our country's interest, to have him continue. You need -- The American public has to feel better about the efforts that are being made in the Gulf and they're not going to feel better with the present CEO.”

In a separate interview at Allen and Company's Sun Valley conference, Buffett opposed the views of Paul Krugman when he commented that the country is heading for a "third depression."

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