Oil company BP has removed chairman Albert Manifold due to significant concerns about his behavior. The multinational’s board unanimously agreed to his immediate departure without providing detailed reasons, citing serious issues related to governance standards and conduct. Despite surviving investor opposition at BP’s recent annual general meeting, concerns raised by advisory group Glass Lewis led to the board’s decision.
Amanda Blanc, BP’s senior independent director, acknowledged Manifold’s contributions to the company’s transformation but emphasized the board’s disappointment with unacceptable governance oversight and conduct issues. Ian Tyler has been appointed as interim chairman while a search for a permanent replacement is underway.
Manifold, who previously served as the chief executive of building material firm CRH, took on the role of BP chairman in July last year. His sudden exit follows the resignation of BP’s chief executive, Bernard Looney, amid personal relationship controversies.
Following the confirmation of Manifold’s departure, BP’s stock price plummeted over 5%, wiping out more than £4 billion of its market value. The company, along with its competitors, has faced criticism for increased profits following the Iran conflict. BP’s first-quarter profits nearly doubled to approximately £2.4 billion, mainly attributed to the conflict’s impact in a short period.
In a strategic shift back to fossil fuels, BP appointed Meg O’Neill as its fifth CEO in six years at the end of the previous year. Analysts like Maurizio Carulli from Quilter Cheviot acknowledge the surprise of Manifold’s departure but emphasize BP’s overall operational improvements and strategic focus. They stress the importance of a comprehensive search for a new chairperson with the right professional skills and personal attributes.
