Oil company BP has removed chairman Albert Manifold from his position due to significant concerns about his behavior. The multinational’s board unanimously made the decision for his immediate departure, citing serious issues related to governance standards, oversight, and conduct.
Manifold, an Irishman earning £1 million annually, faced opposition from 18% of shareholders at BP’s recent annual general meeting. Despite surviving an investor rebellion, concerns raised by advisory group Glass Lewis led to his removal.
Amanda Blanc, BP’s senior independent director, acknowledged Manifold’s contributions to the company’s transformation but expressed disappointment over the governance and conduct issues that prompted his dismissal. The board has appointed Ian Tyler as interim chairman and initiated a search for a permanent replacement.
Manifold, who previously served as chief executive at CRH, assumed the role of BP chairman in July last year. His sudden departure follows the resignation of BP’s chief executive, Bernard Looney, in September 2023, due to personal relationship issues with colleagues.
Following the confirmation of Manifold’s departure, BP’s share price plummeted by over 5%, resulting in a market value loss of more than £4 billion. The company’s stock price experienced a significant decline of up to 9% in response to the news.
BP, like its competitors, has faced criticism for soaring profits in the aftermath of the Iran conflict. In the first quarter of this year, BP’s profits nearly doubled to approximately £2.4 billion, primarily driven by the conflict that began in late February.
In a strategic shift back to fossil fuels from renewable energy initiatives, BP appointed Meg O’Neill as its fifth CEO in six years at the end of the previous year. Analyst Maurizio Carulli noted that while Manifold’s departure was unexpected, BP has a history of senior personnel changes, emphasizing the collective efforts of the organization in driving operational improvements.
Moving forward, Carulli highlighted the importance of a thorough search for a new chairperson by BP’s board and senior independent director, Amanda Blanc, focusing on both professional capabilities and personal attributes of potential candidates.
