BP Removes Chair Albert Manifold Amid Governance Concerns

The British oil giant BP announced on Tuesday the immediate removal of its chair, Albert Manifold, due to significant concerns regarding his leadership. These issues arose less than a year after his appointment.

Amanda Blanc, BP’s senior independent director, stated, “The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.” Ian Tyler, who has been on the board since April, will serve as interim chair.

Mr. Manifold’s time at BP was short. He joined the board in September and became chair the following month. BP has experienced numerous leadership changes, driven by investor dissatisfaction with its strategy and performance. Last December, Murray Auchincloss was replaced by Meg O’Neill, former head of Woodside Energy. Ms. O’Neill became BP’s first female and first externally appointed chief executive.

Mr. Auchincloss’s predecessor, Bernard Looney, resigned in 2023 after failing to disclose previous personal relationships with colleagues. Mr. Looney had shifted BP’s focus from oil and gas to renewable energy, with a goal of becoming a net-zero company by 2050. This decision alienated some investors and harmed share prices.

Facing pressure from shareholders, including activist investor Elliott Management, BP recommitted to oil and gas production, resulting in criticism from environmental groups. A paper from the Oxford Executive Institute noted, “While the company aims to maximize profitability in the short term, this decision raises concerns about long-term sustainability and climate change mitigation.”

A shareholder meeting last month saw dissent, with certain company-supported resolutions, like those on climate disclosures, failing to pass. The exclusion of a climate action group’s resolution sparked further backlash. Approximately one-fifth of shareholders opposed Mr. Manifold’s reappointment, an uncommon level of dissent for such a routine matter.

BP’s shares dropped more than 5% in London on Tuesday, despite being up nearly 20% this year, largely due to a rise in oil prices following the war in Iran starting in late February. The company reported a first-quarter profit exceeding $3 billion, highlighting “exceptional” results in its oil trading business.

Gregory Schmidt oversees European economy coverage as a Times business editor and is based in London.