BP removes chair Albert Manifold over 'serious' governance, conduct concerns

(Sharecast News) - BP shares slid on Tuesday as the oil giant said that chair Albert Manifold had been removed with immediate effect after "serious" concerns were raised about "important governance standards, oversight and conduct".

Senior independent director Amanda Blanc 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."

BP has appointed Ian Tyler as interim chair with immediate effect.

Tyler said: "The board and leadership team have deep conviction in the strategic direction we have laid out, and the company is moving at pace to deliver it. BP is building a track record of strong underlying operational performance and a tight focus on financial discipline - all in the pursuit of growing shareholder value and returns.

"The board has been very impressed with Meg O'Neill since she joined as CEO. She has extensive industry and operational experience and real clarity about the direction and opportunity for the business. She has already taken bold action to simplify and strengthen the organisation such as announcing the move to a clearly defined upstream/downstream model. Under her leadership we are building a simpler, stronger, more valuable BP."

The company said a succession process for a permanent chair will be initiated.

At 1534 BST, the shares were down 5% at 523.40p.

According to the Financial Times, which cited people familiar with the discussions inside BP, Manifold was viewed by other directors as too aggressive.

It was understood that several colleagues saw the level of control he exerted as more akin to that of an executive chair. Sources told the FT that Manifold at times spoke down to senior members of staff, both in one-to-one encounters as well as in larger meetings.

He was described by one person close to BP's board as "shouty", while another person said he had withheld important information from other board members.

Kathleen Brooks, research director at XTB, said: "There was no detail as to what these breaches were, or when they occurred, and it leaves investors wondering how they weren't unearthed during the hiring process.

"The news raises two questions for BP shareholders. Firstly, Manifold was brought in to spearhead the transition back to oil and gas, after a disastrous foray into renewables. Will his removal threaten his transition or delay this process? He was considered a hands on and controversial chair, and managed to survive a shareholder rebellion last month. He reportedly clashed with new CEO Meg O'Neil, so this could be a win for her, but it comes at a high price and a lurch lower in for the shares.

"Added to this, Manifold's ousting is the second major executive replacement at BP for conduct reasons in three years. Former CEO Bernard Looney was replaced in 2023 due to failings in his personal conduct. The fact that Manifold has left so soon raises genuine concerns about HR policies at BP, and the corporate culture. It also suggests a lack of stability at the firm, which is bad news for shareholders."

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