Leadership Turmoil at BP Following Chairman’s Dismissal

BP’s abrupt dismissal of chairman Albert Manifold this week marks yet another controversial exit within the oil giant, reportedly stemming from “multiple” whistleblower complaints regarding alleged “bullying” of colleagues.

Not long ago, Manifold was instrumental in persuading CEO Meg O’Neill to join BP. However, tensions reportedly heightened when he began to behave as if he was directly managing day-to-day operations, which may not have aligned well with the company’s corporate culture, according to reports.

Manifold, who came from the Irish building materials sector, had no prior experience in the energy industry before joining BP. Some employees noted that his “nagging” style of management clashed with the company’s norms and affected his rapport with colleagues.

On Tuesday, BP announced that Manifold was resigning “with immediate effect,” citing “serious concerns” regarding “key governance standards, oversight, and conduct.”

Amanda Brann, BP’s senior independent director who had overseen his appointment last fall, acknowledged Manifold’s contributions but expressed disappointment over governance issues, leading the board to take decisive action.

In response, Manifold rejected this portrayal of his leadership, asserting, “I will not allow a false narrative to stand.” He complained that his dismissal occurred “without warning or explanation,” despite his attempts to implement real change at BP, like cost-cutting and holding the organization to higher standards.

Insiders have indicated that BP might be preparing for legal action from Manifold, who had streamlined its board and contributed to a stock price rise of over 20% in less than eight months on the job.

During his tenure, Manifold was supported by activist hedge fund Elliott Management, which holds a roughly 5% stake in BP. However, Elliott had diminished influence at BP’s recent board meeting.

Many of Manifold’s peers described him as “impossible to work with,” citing his desire for control as a barrier to collaboration. Accusations arose regarding his use of personal devices for company business, although a source close to him dismissed these claims, arguing that BP itself had communicated with him via personal email.

BP has faced significant leadership turnover in the past three years, including two chairmen and two CEOs since 2023, when the former CEO, Bernard Looney, was dismissed for misleading the board about his relationships with employees. The company also announced the sudden departure of CEO Murray Auchincloss in December, without disclosing reasons.

Manifold played a key role in convincing O’Neill to take the CEO position, which has garnered a reputation for being particularly challenging in recent years. O’Neill reportedly voted with the board to remove Manifold, perhaps suggesting a desire for renewed direction and restoration of BP’s reputation.

Under Manifold’s leadership, BP was restructured into two major oil and gas divisions and pursued a shift toward renewable energy, a strategy that didn’t resonate strongly with investors. His management approach has been characterized as “no-nonsense,” but critics claim that his firing adds to concerns about BP’s leadership stability. Some worry that this could leave O’Neill exposed to the blame for any future missteps.

This week, BP’s stock price fell by 6.8% following Manifold’s exit, although it has gained nearly 42% over the past year.