Forcing CEOs to step down

Oil giant BP Chief Executive John Browne ended speculation about his retirement on Tuesday, saying he would go as planned in 2008.

BP has a retirement age of 60, which Browne will be in 2008. Browne said he would stay beyond his birthday but go by the end of 2008.

Browne is one of the UK's best paid executives, although his package, worth around $10 million (5.4 million pounds) last year, is modest compared to that of U.S. oil major chief executives like Exxon Mobil's Lee Raymond who took home $49 million last year, before retiring.

The whole question of BP’s chief executive having no option but to stand down at 60 is calling for a rethink of companies’ retirement policies in the boardroom in an increasingly competitive, globalised economy.

In the case of BP, this rethink requires a change of the UK legislation that is forcing their employees to accept the 'golden handshake' and stand down while the world's industrial leader US and the emerging giant China do not practice such forced retirement.