Former bp chair disputes ouster after governance allegations
(Bloomberg) – Former bp Plc Chairman Albert Manifold says he was fired without warning or explanation and will challenge the company’s version of events, deepening the turmoil around the UK oil major’s latest leadership change.
bp ousted Manifold on Tuesday after eight months on the job, citing serious concerns related to “governance standards, oversight and conduct.” The company didn’t provide further details in its statement, but people close to bp who requested anonymity said there’d been complaints about aggressive behavior by Manifold toward employees, as well as of mishandling sensitive information and seeking to bypass the board.
“I was removed without warning and without explanation,” Manifold said in an emailed statement. “I dispute entirely the characterization of my conduct, and I will not allow a false narrative to go unchallenged.”
Manifold’s dismissal is the latest in a prolonged period of leadership upheaval at bp, which has included three chief executive officers in as many years, and raises fresh questions about the company’s internal processes at a time when it’s seeking to turn around years of poor performance. Manifold was seen as accelerating bp’s strategic reboot as the company had been under pressure.
bp’s shares slumped 4% on Tuesday. They were down 1.3% as of 10:45 a.m. in London, slightly outperforming Shell Plc and TotalEnergies SE as oil prices declined.
The decision consolidates the authority of new Chief Executive Officer Meg O’Neill, who Manifold hired last year, and who has already begun to reshape the company—announcing a restructuring within a couple of weeks of starting in the role last month.
“We had welcomed what looked to be a turnaround under Mr. Manifold, but we think serious questions do need to be asked about the wider board’s decision-making process,” Barclays Plc analyst Lydia Rainforth said in a note.
The oil giant had underperformed rivals for years after former CEO Bernard Looney, who departed after failing to disclose personal relationships with colleagues to the board, pivoted the company toward renewable energy.
“During my time as chairman I worked to drive genuine change at bp—cutting costs, challenging excess, and holding the organization to higher standards,” Manifold wrote. “The board’s statement this morning acknowledged the focus and pace I brought.”
Welcomed changes
Prior to the news of his departure, investors had welcomed many of the changes Manifold brought, including the swift appointment of O’Neill.
Earlier Tuesday, bp signaled it will stick with the strategy championed by Manifold since his October appointment. The Irishman, who previously ran building-materials giant CRH Plc, pushed bp to invest in its core oil and gas business, improve operational performance and sell assets.
Activist investor Elliott Investment Management had advocated for several such changes, having amassed a stake in bp starting more than a year ago. Elliott declined to comment on Manifold’s ouster.
The board has “deep conviction in the strategic direction we have laid out, and the company is moving at pace to deliver it,” Ian Tyler, who replaced Manifold as interim chairman, said in a statement.
Manifold’s measures showed signs of working. He scored a coup by recruiting former Exxon Mobil Corp. executive O’Neill to join as CEO from Woodside Energy Group Ltd.
Boosted by higher crude prices and high trading profits, bp is the second-best performing oil supermajor since the war with Iran began in February. Now, analysts fear uncertainty will once again dog returns.
“We had believed Manifold could be a driving force behind any updates, including an acceleration of investing in core oil and gas assets and further simplifying the business,” Jason Gabelman, a New York-based analyst at TD Cowen wrote in a note. “Continued leadership change could bring into question pace of change at a minimum.”
