BP Chair Albert Manifold Fired Over Governance Concerns

BP has fired its chairman, Albert Manifold, just months into the job due to serious concerns about governance standards, oversight, and conduct. This sudden departure prolongs a period of turmoil at the UK oil major.

The company has had three chief executive officers in as many years, with Manifold's predecessor leaving in 2025 amid pressure from activist investor Elliott Investment Management. The latest departure raises fresh questions about the company's processes at a time when it's seeking to turn around years of poor performance, rebuild its balance sheet, and focus on its core oil and gas business.

Manifold, a former construction materials executive, was broadly popular with several key investors for his decisive moves to win back investor confidence since his appointment late last year. He stepped into the role of chairman on October 1 at a time of intense pressure for BP, as Elliott pushed for urgent change. The company's efforts to reset its strategy after a failed pivot to renewables weren't winning over investors.

The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action, said senior independent director Amanda Blanc.

The chairman's removal consolidates the authority of Meg O'Neill, Big Oil's first female CEO and BP's first external hire for the top job, who joined on April 1 from Australia's Woodside Energy. O'Neill has already moved to reshape the company. Manifold urged employees to go faster in unwinding failed green bets and boosting investments in fossil fuels. He took charge of a thorough review of the company's portfolio to cull underperforming assets.

Manifold's early moves were welcomed by Elliott, which he met with multiple times, according to people familiar with the matter. Elliott didn't comment. The board appointed Ian Tyler as interim chair; he said in a statement that BP's leadership still has deep conviction in the strategic direction they've laid out and has been very impressed with Meg O'Neill since she joined as CEO.

The renewed leadership uncertainty could revive questions about whether BP may become a takeover target. A period of prolonged speculation last year eventually prompted rival Shell to announce it had no intention of making a bid. Shell has since agreed to buy Canadian oil and gas producer ARC Resources Ltd. for $US13.6 billion.

Manifold's brief tenure as chairman was marked by some controversy - the company suffered a shareholder backlash last month after refusing to put a resolution from an activist group up for a vote at its annual general meeting. Two resolutions proposed by management, which would have allowed fully virtual annual meetings and revoked previously approved climate-related disclosure obligations, were rejected. Manifold received a lower-than-normal share of the vote approving his reelection to the board.

Yet, prior to news of Manifold's departure, investors had welcomed many of the changes he ushered in. BP's shares had outperformed some of its rivals as it moved to shore up its balance sheet, although a decision to suspend share buybacks in February left the company as the only one of the top five oil majors without a share repurchase program.

With a resurgent share price so far this year, BP should be taking credit for the rewards of its strategic reset, said Lindsey Stewart, director of institutional investor content at Morningstar. Instead, the company is on its third CEO and now its third chairman in under three years. It's clear that getting a grip on corporate governance and strategy at the company must be a priority of the interim chair and his eventual successor.

BP's efforts to reset its strategy come at a time when the energy industry is undergoing significant changes. The company's decision to focus on its core oil and gas business may be a response to the failed pivot to renewables. The move to unwind failed green bets and boost investments in fossil fuels may have significant implications for the company's future.

The Australian connection to the story is notable, with Meg O'Neill joining BP from Woodside Energy. The appointment of O'Neill as CEO has been seen as a positive move by investors, and her experience in the Australian energy industry may be an asset for the company.

The future of BP remains uncertain, with the company facing significant challenges in the years ahead. The departure of Manifold and the appointment of Ian Tyler as interim chair may be a step towards greater stability, but it's clear that the company still has a long way to go in terms of governance and strategy.

The firing of Albert Manifold as BP's chairman raises significant questions about the company's processes and strategy. The move consolidates the authority of Meg O'Neill, and the company's future remains uncertain. The energy industry is undergoing significant changes, and BP's decision to focus on its core oil and gas business may have significant implications for the company's future. BP's shareholders and investors will be watching the company's next moves closely, as they don't want to see the company's progress derailed by further leadership uncertainty. The company won't be able to achieve its goals without a stable and effective leadership team in place.

It's crucial that BP's leadership takes the necessary steps to address its governance and strategy issues, or it won't be able to compete effectively in the energy industry.