On Tuesday, BP announced the immediate dismissal of chairman Albert Manifold, citing issues related to governance and conduct. Allegations from four officials pointed to offensive and unacceptable behavior towards colleagues.
A spokesperson for BP did not elaborate further on the specifics. Attempts to reach Manifold for comments were unsuccessful.
Manifold’s departure comes less than eight months after he took the reins to guide a strategic overhaul amid ongoing scandals and changes in leadership at BP. Not long ago, former CEO Bernard Looney was let go for misleading the board about personal relationships within the company.
Manifold had recently assumed his role, following the abrupt resignation of his predecessor, Murray Auchincloss, last December, which lacked clear reasoning. Meg O’Neill, the former CEO of Woodside, has now stepped in as BP’s fifth CEO since 2020, focusing on a return to traditional oil and gas rather than renewable energy.
BP Board Unanimously Votes to Remove Manifold
In a statement released by BP, the board of directors collectively decided that, effective immediately, Manifold should no longer serve as chairman or director. This decision was made despite backing from activist hedge fund Elliott, which holds about 5% of BP’s shares.
BP noted, “This follows serious concerns raised about key governance standards, oversight, and conduct.” Senior independent director Amanda Brann expressed surprise and disappointment over the circumstances surrounding Manifold’s departure, as she had overseen his appointment in October.
Several individuals familiar with the situation, including one close to the board, revealed that allegations of inappropriate behavior contributed to Manifold’s removal. One source indicated the board had received enough information from a whistleblower to identify a troubling pattern of conduct.
After the announcement, BP’s stock price dropped nearly 10%, prompting a temporary trading halt, but has since recovered slightly to around 4%. Meanwhile, an index of European energy companies saw a minor decline of about 0.1%.
Background on Manifold’s Appointment
Before joining BP, Manifold had no experience in the energy sector but had established his reputation as the chief of CRH, a materials company, where he restructured its portfolio and shifted its primary listing from Ireland to the U.S., boosting its stock price.
His appointment came amid concerns about BP’s stock performance compared to its competitors, which heightened speculation about potential takeovers or breakup scenarios.
During Manifold’s leadership, the BP board contracted, with several members, including Shell’s finance chief Simon Henry, leaving the company.
At BP’s annual general meeting in April, two board resolutions failed to pass, and support for Manifold’s chairmanship was notably lower than in past years. Although the board was cohesive during the vote, proxy advisor Glass Lewis criticized Manifold’s role in excluding a resolution from climate activist group Follow This and advised against his confirmation. Ultimately, his appointment received about 82% support—less than the usual near 100% approval for directors.
Ian Tyler, a former head of Balfour Beatty, is set to take over as interim chairman.
