The British oil company BP has announced the removal of its chair, Albert Manifold, due to serious concerns about his governance and conduct. Manifold had been appointed less than a year ago. The board expressed surprise and disappointment over the issues, leading to this decisive action, according to Amanda Blanc, BP’s senior independent director.
While BP did not specify the exact reasons for Manifold’s removal, Ian Tyler, who joined the board last April, has been named interim chair. Manifold joined the board in September and became chair in October, making his tenure rather brief.
BP has faced several leadership changes recently, driven by dissatisfaction from investors over its strategy and financial performance. In December, the company replaced its chief executive, Murray Auchincloss, with Meg O’Neill. O’Neill is notable as BP’s first female chief executive and the first appointed from outside the company. She previously led Woodside Energy in Australia.
Auchincloss succeeded Bernard Looney, who resigned in 2023 after he admitted not disclosing previous personal relationships with colleagues. Under Looney, BP committed to reducing reliance on oil and gas production, investing substantially in renewable energy with a target to be net-zero by 2050. This shift did not sit well with all investors, impacting BP’s stock negatively.
BP has shifted back towards oil and gas production, partly due to pressure from investors such as Elliott Management. However, this decision has received criticism from environmental groups. According to researchers at Oxford Executive Institute, while BP seeks to maximize short-term profit, there are concerns about its long-term sustainability and climate change efforts.
At BP’s recent annual shareholder meeting, some company-backed resolutions, including those on climate disclosures, failed to receive majority support. A climate-focused resolution was even excluded, leading to backlash from some shareholders and advisory groups. Around 20% of shareholders opposed Manifold’s reappointment as chairman, indicating significant resistance against the typically routine proposal.
On Tuesday, BP’s shares dropped over 5% in London. Despite this decline, the stock has seen nearly a 20% increase this year, driven by rising oil prices following the February conflict in Iran. In the first quarter, BP reported over $3 billion in profits, highlighting strong performance from its oil trading business.
Gregory Schmidt, a business editor for the Times, is responsible for covering the European economy. He is based in London.