BP sacks chairman Albert Manifold after seven-month tenure over governance concerns
Shares drop 5% as board cites serious oversight failures, marking a turbulent start for CEO Meg O’Neill.
BP has dismissed chairman Albert Manifold following a seven-month tenure, citing serious concerns regarding governance standards, oversight, and conduct. The board determined that Manifold, the former chief executive of CRH, failed to transition from an active executive style to the passive oversight role required of a non-executive chair. This decision follows significant investor opposition at the recent annual general meeting, where over 18% of investors voted against his re-election, urged by advisory firm Glass Lewis.
The dismissal comes amid reports that Manifold exerted a level of control more akin to an executive chair, a breach of governance norms that has drawn scrutiny from colleagues and the board alike. The Financial Times reported that this hands-on approach was inconsistent with the duties of the chairmanship, leading to the board’s conclusion that he could not adapt to the position. Manifold faced additional criticism at the AGM for blocking a climate activist resolution, further straining relations with shareholders.
Ian Tyler has been appointed interim chairman while the board searches for a permanent replacement. The market reaction was immediate, with BP shares falling as much as 9% before settling around 5% lower. The decline reflects investor sentiment regarding the governance scandal, which compounds existing strategic friction within the company.
CEO Meg O’Neill, who assumed the role in April, now faces this leadership upheaval alongside ongoing debates over BP’s strategic direction. The company has been navigating a shift away from renewables, a move that has already generated tension among investors. O’Neill’s early tenure is now defined by the need to stabilise governance while managing these strategic reversals.
The UK Serious Fraud Office has been contacted by media outlets regarding potential legal scrutiny, although no formal investigations or charges have been confirmed. The specific details of the governance concerns have not been elaborated upon by BP, leaving the long-term impact of the interim leadership and the search for a permanent chairman uncertain.
