BP Removes Chairman Albert Manifold Over Governance Oversight And Conduct Concerns

BP removed Chairman Albert Manifold with immediate effect on Tuesday, citing “serious concerns” about “governance standards, oversight and conduct,” and the move came after less than a year in the role.

“Albert Manifold is out as chairman of British Petroleum (BP), effective immediately after only eight months on the job”

Al Jazeera

Amanda Blanc, BP’s senior independent director, said: “However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.”

Al Jazeera

Shares of the London-listed company fell as much as 9% after the announcement before paring losses, with CNN later citing trading down 4.4% at £5.27 ($7.09) per share.

BP appointed Ian Tyler as interim chair with immediate effect and said a succession process for a permanent chair is set to get underway.

The board’s decision followed Manifold’s appointment as chair on October 1, after he succeeded Helge Lund as BP chair.

BP’s board said it removed Manifold unanimously, while CNN reported BP declined to provide further details when contacted.

The Guardian said Manifold’s conduct was considered too aggressive by other directors and that he was seen as trying to exert control “in the manner of an executive rather than of a chair,” according to reports.

BBC

Follow This’s Mark van Baal said the new chair must bring “real expertise in governance, climate risk and transition risk, otherwise nothing changes,” after BP blocked a resolution at its AGM.

Lindsey Stewart of Morningstar described the dismissal as proof that BP has “the most volatile boardroom” of the oil supermajors, linking the decision to exclude a shareholder proposal to questions about governance and oversight.

BP said it would launch a process to find a new chair on a permanent basis, as the company began searching for its third chair in under three years.

Ian Tyler said BP was “moving at pace” to deliver the strategic direction the board has laid out, and he added the company was building “a track record of strong underlying operational performance and a tight focus on financial discipline.”

“BP Plcunexpectedly fired ChairmanAlbert Manifoldjust months into the job due to serious concerns about “governance standards, oversight and conduct,” prolonging a period of turmoil at the UK oil major”

Bloomberg

Tyler also said the board had been “very impressed” with Meg O’Neill, who became BP’s CEO in April, replacing Murray Auchincloss after less than two years in the role.

BP’s leadership churn has included Bernard Looney’s resignation in 2023 after he admitted he had not properly disclosed past relationships with colleagues, and the company has now appointed a new interim chair as it searches for a permanent replacement.

ACCR called on BP’s board to provide “a full and transparent account” of exactly what led to Manifold’s dismissal, while Follow This said the new chair must bring “real expertise” in governance, climate risk and transition risk.

The removal deepens uncertainty for investors as BP’s boardroom instability continues alongside BP’s pivot back to its core business of oil and gas and away from renewables.