The British oil corporation BP has announced the removal of its chairman, Albert Manifold. This decision comes less than a year after his appointment, following serious concerns about his leadership and governance standards. Amanda Blanc, BP’s senior independent director, expressed disappointment over the discovered issues and confirmed that the board took quick action.
Ian Tyler, a board member since last April, will take on the role of interim chair. Mr. Manifold’s involvement with BP was brief, joining the board in September and moving to chairman in October.
The company has experienced several leadership changes recently, largely due to investor dissatisfaction with its performance. In December, BP replaced its CEO, Murray Auchincloss, with Meg O’Neill. She previously led Woodside Energy in Australia and is BP’s first female CEO and its first external appointment to this position.
Auchincloss’s predecessor, Bernard Looney, resigned in 2023 after admitting he did not disclose past personal relationships with coworkers. Looney’s focus on shifting BP towards renewable energy and reducing oil and gas reliance met with investor resistance, causing BP’s stock to plummet.
Investor pressure, including from Elliott Management, has led BP to refocus on oil and gas production. This shift has sparked criticism from environmental groups concerned about the company’s commitment to sustainability and climate change.
BP encountered challenges at its recent shareholder meeting. Some resolutions, including those on climate disclosure, did not pass, and a climate group’s proposal was excluded, leading to pushback. About 20% of shareholders opposed Mr. Manifold’s reappointment, seen as significant for such decisions.
Despite these governance issues, BP’s shares dropped over 5% Tuesday in London. However, they remain up nearly 20% this year, bolstered by rising oil prices following the conflict in Iran. BP reported profits exceeding $3 billion in the first quarter, citing strong performance in oil trading.
Gregory Schmidt, a business editor at the Times, covers the European economy from London.