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BP has abruptly removed Chair Albert Manifold from his position, effective immediately, due to issues related to governance and conduct. According to four sources, these issues involve allegations of aggressive and unacceptable behavior towards his colleagues.
A BP representative chose not to elaborate on the situation further. Attempts to contact Manifold for his comments were unsuccessful.
Manifold’s sudden departure comes less than eight months after he assumed the role to oversee a strategic overhaul at BP. This follows a series of controversies and leadership disruptions within the company. Notably, former BP CEO Bernard Looney was dismissed less than three years ago after misleading the board about his personal relationships with colleagues.
Amidst these leadership changes, Manifold had recently stepped into the position, only to see Murray Auchincloss, Looney’s successor, leave unexpectedly in December without explanation. In response, former Woodside CEO Meg O’Neill was swiftly appointed as BP’s fifth CEO since 2020, tasked with refocusing the company’s efforts on oil and gas, moving away from the renewable energy initiatives previously announced by Auchincloss last year.
BP board unanimously decided to oust Manifold
In a Tuesday statement, BP announced that its board had unanimously concluded Manifold should no longer hold the roles of chair and director. This decision comes even though Manifold had the support of activist hedge fund Elliott, which has acquired roughly a 5% stake in BP.
“This follows serious concerns raised to the board related to important governance standards, oversight and conduct,” BP said.
“Albert has helped bring a welcome focus and pace to BP’s transformation. However, 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. Blanc oversaw Manifold’s appointment in October.
Four sources with knowledge of the matter, including one close to BP’s board, cited alleged unacceptable and aggressive behavior with different colleagues across the company as one reason for Manifold’s ouster. One source said the board had received enough information following a whistleblower report to ascertain that there was a pattern of unacceptable behavior.
The sources declined to be named because they were not authorized to speak publicly.
Elliott declined to comment.
BP shares were down almost 10% after the announcement and their trading briefly halted. They later pared some losses to trade down around 4%. An index of European energy companies was down around 0.1%.
Manifold was appointed amid takeover speculation
Manifold, who had never held a job in the energy industry before BP, had made a name for himself as the chief at building materials producer CRH whose portfolio he reshaped. He also moved its primary listing from Ireland to the US and the share price rose.
BP announced his appointment last year after years of share underperformance against its rivals had prompted persistent takeover and break-up speculation.
Under Manifold, BP’s board shrank. Shell finance chief Simon Henry, who only joined BP in September, was among those leaving.
In April, at BP’s annual general meeting, the board failed to get two of its resolutions accepted by shareholders and Manifold’s appointment as chair got less support than typical.
While the board stood united at the AGM, proxy adviser Glass Lewis said at the time Manifold was ultimately accountable for BP’s decision to exclude a resolution filed by climate activist group Follow This and thus recommended a vote against him. His appointment was confirmed by around 82% of votes, which is below a typical tally near 100% for directors.
Ian Tyler, a former chief of British construction group Balfour Beatty and on BP’s board since last year, will be interim chair.