BP announced on Tuesday that it has removed Albert Manifold from his position as chair, effective immediately. The decision comes less than eight months after he assumed the role to assist in overseeing a strategy shift. The company cited issues with governance standards, oversight, and conduct.
Manifold’s removal follows a series of scandals and changing leadership at BP. Less than three years prior, former CEO Bernard Looney was dismissed for providing false information to the board about personal relationships with colleagues.
Murray Auchincloss, who succeeded Looney, abruptly departed in December without a clear explanation. Meg O’Neill, formerly CEO of Woodside, was appointed as BP’s fifth CEO since 2020. She will lead the company in returning focus to oil and gas, moving away from a renewable energy strategy set by Auchincloss.
BP’s board unanimously concluded that Manifold should no longer fulfill his duties as chair and director. This decision came despite Manifold having support from activist hedge fund Elliott, which holds a 5% stake in BP. “This follows serious concerns raised to the board related to important governance standards, oversight, and conduct,” stated BP, highlighting the surprise and disappointment felt by the board over these issues.
Amanda Blanc, senior independent director who oversaw Manifold’s appointment, commented on the board’s decision. A spokesperson for BP declined further details, while Elliott also chose not to comment.
Following the announcement, BP shares decreased by nearly 10%, briefly halting trading. They later recovered some losses, trading down about 5%. In contrast, an index of European energy companies dropped less than 1%.
Manifold, with no prior experience in the energy sector before joining BP, had previously been renowned as the head of building materials producer CRH. There, he reshaped its portfolio and moved its primary listing from Ireland to the U.S., boosting its share price.
His appointment came after BP faced years of underperformance compared to its rivals, sparking speculation of takeovers and break-ups.
Under Manifold’s brief leadership, BP’s board size was reduced. Among those departing was Simon Henry, finance chief from Shell, who joined BP in September but left shortly after.
During BP’s annual general meeting in April, the board did not succeed in securing acceptance for two of its resolutions. Manifold’s appointment as chair received lower shareholder support than usual. Proxy adviser Glass Lewis held Manifold accountable for excluding a climate activist group’s resolution and advised voting against his appointment. His confirmation received about 82% of votes, a lower figure compared to typical director confirmations that approach 100%.
Ian Tyler, former chief of British construction group Balfour Beatty and a BP board member since last year, will serve as interim chair.