BP Removes Chairman Amid Governance Concerns
British oil giant BP announced the removal of its chair, Albert Manifold, following serious concerns about leadership just months after his appointment. The decision underscores issues related to governance standards and conduct. Amanda Blanc, BP’s senior independent director, emphasized that the board’s actions were based on unacceptable oversight and conduct issues.
The specifics of Manifold’s ouster were not disclosed. Ian Tyler, a board member since the previous April, will temporarily assume the role of chair. Manifold’s time at BP was notably short, having joined the board in September and becoming chair in October.
In recent years, BP has faced significant leadership changes due to dissatisfaction with its financial strategy and performance among investors. Last December, BP replaced its CEO, Murray Auchincloss, with Meg O’Neill, who led Australia’s major oil and gas company, Woodside Energy. O’Neill is BP’s first female CEO and the first appointed from outside the company.
Prior to Auchincloss, Bernard Looney resigned in 2023 after admitting undisclosed personal relationships within the company. During Looney’s tenure, BP shifted focus from oil and gas to renewable energy, aspiring to achieve net-zero emissions by 2050. This strategy faced backlash from investors and contributed to a decline in BP’s stock value.
Bowing to shareholder pressure, including from Elliott Management, BP has recommitted to oil and gas production, a move criticized by environmental advocates. Researchers at Oxford Executive Institute expressed concerns about the implications for long-term sustainability and climate change initiatives.
At BP’s recent shareholder meeting, the company faced opposition with some resolutions, particularly regarding climate disclosures, failing to secure majority support. A proposal from a climate action group was excluded, leading to shareholder discontent. Approximately 20% of shareholders opposed Manifold’s reappointment, unusually high for such decisions.
BP’s shares dropped over 5% in London on Tuesday, though they have increased nearly 20% throughout the year, driven by rising oil prices amid the conflict in Iran. In the first quarter, BP reported profits exceeding $3 billion, driven by strong oil trading results.
Gregory Schmidt, a Times business editor based in London, covers the European economy.