BP Removes Chair Albert Manifold Amid Governance Concerns

The British oil company, BP, announced on Tuesday the removal of its chair, Albert Manifold, due to serious governance concerns. This decision comes less than a year after his appointment.

Amanda Blanc, the senior independent director at BP, stated, “The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.” The specifics of Mr. Manifold’s removal were not detailed. Ian Tyler, a board member since last April, will serve as interim chair.

BP has experienced significant leadership changes in recent years, amid investor dissatisfaction regarding its performance and strategic direction. In December, BP appointed Meg O’Neill as its chief executive. She had led Australia’s largest oil and gas company, Woodside Energy. Ms. O’Neill is BP’s first female chief executive and the first to be appointed from outside the company.

Murray Auchincloss, BP’s previous chief executive, was ousted and replaced by Ms. O’Neill. His predecessor, Bernard Looney, resigned in 2023 due to undisclosed personal relationships with colleagues.

Under Looney, BP shifted away from traditional oil and gas production towards renewable energy, aiming to achieve net-zero emissions by 2050. This strategy, however, alienated some investors and led to a drop in the company’s share value.

Facing shareholder pressure, including from activist investor Elliott Management, BP has renewed its focus on oil and gas production. This shift has drawn criticism from environmental groups. Researchers at Oxford Executive Institute noted concerns about BP’s long-term sustainability and climate change mitigation in a paper last year.

At BP’s recent annual shareholder meeting, several company-backed resolutions failed to receive majority support. The company also excluded a climate action group’s proposal, resulting in backlash from some shareholders and advisory firms. Nearly 20 percent of shareholders opposed Mr. Manifold’s reappointment as chairman.

On Tuesday, BP’s shares in London fell over 5 percent. Despite this, the stock remains up nearly 20 percent this year, bolstered by rising oil prices since the inception of the war in Iran in late February. BP reported a first-quarter profit exceeding $3 billion, attributing “exceptional” results to its oil trading business.

Gregory Schmidt is a Times business editor focused on European economic coverage. He is based in London.