BP ousts Chairman Albert Manifold, citing unspecified governance issues
His exit, after roughly eight months in the role, adds to a turbulent period for the oil major, which has been rocked by scandal and repeated upheaval at the top.
BP has removed Irish chairman Albert Manifold with immediate effect, saying today that the decision followed concerns over governance standards, oversight and conduct, just months after he was brought in to help steer a strategic reset.
His exit, after roughly eight months in the role, adds to a turbulent period for the oil major, which has been rocked by scandal and repeated upheaval at the top.
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Less than three years ago, former BP chief executive Bernard Looney was dismissed after misleading the board about personal relationships with colleagues.
Murray Auchincloss, who succeeded Mr Looney, then departed abruptly in December, with BP neither setting out a public search for a replacement beforehand nor offering a clear explanation for his exit.
In a statement, BP said its board had unanimously concluded that Mr Manifold — who had the support of activist hedge fund Elliott, which has amassed a stake of about 5% in BP — should step down as chair and director immediately.
“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, who led the process that resulted in Mr Manifold’s appointment in October.
A BP spokesperson declined to provide further details.
Elliott Management did not immediately respond to a request for comment.
BP shares fell by almost 10% after the announcement, and trading in the stock was briefly halted. The shares later recovered some of the decline. By contrast, an index of European energy companies was down by less than 1%.
Mr Manifold was appointed amid takeover speculation
Before joining BP, he had never worked in the energy sector, building his reputation instead as the boss of building materials group CRH, where he reshaped the company’s portfolio.
He also shifted CRH’s primary listing from Ireland to the US, and its share price climbed.
BP unveiled his appointment last year after prolonged share price underperformance against rivals had fuelled recurring speculation over a takeover or a break-up of the company.
At BP’s annual general meeting in April, shareholders rejected two board resolutions, while support for Mr Manifold’s appointment as chair was weaker than is usually seen.
Although the board presented a united front at the AGM, proxy adviser Glass Lewis said at the time that Mr Manifold was ultimately responsible for BP’s decision to leave out a resolution submitted by climate activist group Follow This, and recommended shareholders vote against him.
His appointment was ultimately backed by about 82% of votes, below the near-100% support directors typically receive.
