BP, the British oil giant, has announced the removal of Albert Manifold from his position as chair, citing significant concerns about governance standards and conduct. This development comes less than a year after Manifold’s appointment.
Amanda Blanc, BP’s senior independent director, expressed the board’s dismay over the issues, stating, “The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.” The company has not detailed the reasons for Manifold’s dismissal but has appointed Ian Tyler as interim chair. Tyler has been a board member since April of the previous year. Manifold had a brief tenure, joining BP’s board in September before becoming chair in October.
BP has witnessed multiple leadership changes recently, driven by investor dissatisfaction with its strategic direction and financial results. Previously, BP installed Meg O’Neill as the chief executive following the departure of Murray Auchincloss. O’Neill, formerly of Woodside Energy, is BP’s first female CEO and its first external appointment to the role. Auchincloss had succeeded Bernard Looney, who resigned in 2023 after admitting undisclosed personal relationships with colleagues.
Looney’s leadership saw BP move away from traditional oil and gas to focus on renewable energy, aiming for net-zero emissions by 2050. This shift alienated some investors and led to a downturn in BP’s share value. Responding to increasing pressure from shareholders and activist investors like Elliott Management, BP has since reversed its strategy, emphasizing oil and gas production. This pivot has faced criticism from environmentalists, who argue it undermines long-term sustainability and climate change efforts.
BP’s recent shareholder meeting reflected growing investor unrest, with certain resolutions, especially those on climate disclosures, failing to secure majority approval. A sizable minority of shareholders opposed Manifold’s re-election as chairman. BP also sparked controversy by blocking a resolution from a climate action group, leading to dissatisfaction among some shareholders and advisory bodies.
Despite these challenges, BP’s stock remains up by nearly 20% this year, boosted by a significant rise in oil prices following the conflict in Iran. BP reported over $3 billion in profit for the first quarter, highlighting outstanding performance in its oil trading sector.
Gregory Schmidt, a business editor with the Times based in London, oversees coverage of the European economy.
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