BP ousts Chair Albert Manifold in surprise move, citing unnamed governance issues

A BP fuel sign is seen, Tuesday, Sept. 12, 2023, in Marietta, Ga. (AP Photo/Mike Stewart)

BP has ousted Chair Albert Manifold with immediate effect, it said on Tuesday, citing governance standards, oversight and conduct issues, only months after his appointment to help oversee a strategy revamp.

Manifold’s departure after around eight months serving as chair follows scandal and repeated leadership changes at BP. Less than three years ago, former BP CEO Bernard Looney was fired after lying to the board about personal relationships with colleagues.

Looney’s successor Murray Auchincloss left abruptly in December, although BP did not publicly announce a search process for the top job previously or a clear reason for his exit.

BP spokesperson declines to give further details

Manifold oversaw the appointment of former Woodside CEO Meg O’Neill as BP’s fifth CEO since 2020 to accelerate the company’s shift in focus back to fossil fuel and away from renewable energy, a strategy change announced by Auchincloss early last year.

In a statement on Tuesday, BP said its board had unanimously decided that Manifold - who has had the backing of activist hedge fund Elliott, which has built up a stake of around five per cent in BP - should no longer serve as chair and director with immediate effect.

“This follows serious concerns raised to the board related to important governance standards, oversight and conduct,” BP said.

“Albert has helped bring a welcome focus and pace to BP’s transformation. However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action,” said senior independent director Amanda Blanc. Blanc oversaw Manifold’s appointment in October.

A BP spokesperson declined to give further details.

Elliott Management did not immediately respond to a request for comment.

BP shares were down almost 10 per cent after the announcement and their trading briefly halted. They later pared some losses. An index of European energy companies .SXEP was down less than one per cent.

Manifold was appointed amid takeover speculation

Manifold, who had never held a job in the energy industry before BP, had made a name for himself as the chief at building materials producer CRH whose portfolio he reshaped. He also moved its primary listing from Ireland to the U.S. and the share price rose.

BP announced his appointment last year after years of share underperformance against its rivals had prompted persistent takeover and break-up speculation.

In April, at BP’s annual general meeting, the board failed to get two of its resolutions accepted by shareholders and Manifold’s appointment as chair got less support than typical.

While the board stood united at the AGM, proxy adviser Glass Lewis said at the time Manifold was ultimately accountable for BP’s decision to exclude a resolution filed by climate activist group Follow This and thus recommended a vote against him. His appointment was confirmed by around 82 per cent of votes, which is below a typical tally near 100 per cent for directors.

(Additional reporting by Raechel Thankam Job in Bengaluru; Editing by Anil D’Silva and Barbara Lewis)