BP Ousts Chairman Over Governance Concerns

BP, the prominent British oil giant, has announced the removal of its chair, Albert Manifold, due to serious governance concerns. This decision comes less than a year after his appointment, amid dissatisfaction with BP’s financial strategies.

Amanda Blanc, BP’s senior independent director, stated, “The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.” BP did not provide specific details on the circumstances surrounding Manifold’s exit. Ian Tyler, a board member since last April, will step in as interim chair.

Manifold’s stint at BP was notably short; he joined the board in September and ascended to chair a month later. The company has seen several leadership changes recently, driven by investor dissatisfaction over strategic decisions and financial outcomes.

In December, BP appointed Meg O’Neill as the new chief executive, replacing Murray Auchincloss. O’Neill, previously with Woodside Energy in Australia, marked BP’s first female CEO and first external appointment for the role.

Bernard Looney, Auchincloss’s predecessor, resigned in 2023 after failing to disclose previous personal relationships within the firm. Under Looney’s leadership, BP shifted its focus from oil and gas production to renewable energy, aiming to achieve net-zero status by 2050. However, this strategy faced backlash when investor sentiment turned negative, affecting BP’s share price.

BP has since refocused on traditional oil and gas operations, a move criticized by environmental advocates concerned about sustainability and climate change. As BP seeks short-term profits, questions about long-term environmental impacts persist, as noted by researchers from Oxford Executive Institute.

BP recently faced turmoil at its annual shareholder meeting. Resolutions, including ones on climate disclosures, did not secure majority approval. A climate action proposal was also rejected, causing discontent among shareholders. Approximately 20% opposed Manifold’s reappointment as chair, evidencing significant resistance to what is typically an uncontroversial vote.

BP’s shares declined over 5% in London following these developments, although they remain up nearly 20% for the year, buoyed by rising oil prices since the conflict in Iran began in February. BP reported profits exceeding $3 billion in Q1, highlighting “exceptional” outcomes in its oil trading division.

Gregory Schmidt serves as a business editor for The Times, focusing on European economy coverage from his base in London.