British energy giant BP has unanimously sacked its chairman, Albert Manifold, over what it has called “unacceptable” conduct. He is the second high-profile executive to be ousted over corporate misdeeds in three years.
The move is a surprise and comes with Mr Manifold, an Irishman who had been given the task of recalibrating BP's strategy towards fossil fuels in an era of clean energy, only around half a year into his tenure at the helm of the company.
This represents “more instability at the top of BP”, said Robin Mills, the chief executive of Qamar Energy. “It seems there is a problem with the company culture and/or the board,” he told The National in a note, adding that Mr Manifold was seen as a positive influence in recalibrating the oil company's direction. “Manifold was seen by the market as having done a good job to turn them around and reset the strategy.”
While he did “bring a welcome focus and pace” to the company's transformation, BP's board “has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action”, BP senior independent director Amanda Blanc said in a statement on Tuesday, which did not elaborate on specifics.
Independent non-executive director Ian Tyler, who is also chair of the UK building materials company Grafton Group, will take over as chairman on an interim basis while the company searches for Mr Manifold's replacement.
BP's board “unanimously decided that Albert Manifold should no longer serve as chair and director with immediate effect. This follows serious concerns raised to the board related to important governance standards, oversight and conduct,” BP said.
Mr Manifold instigated a quick shake-up at the top of BP after he assumed his role in October, firing chief executive Murray Auchincloss. Mr Auchincloss's predecessor, Bernard Looney, was forced out in 2023 after failing to disclose relationships with colleagues at the time he was named chief executive.
Mr Manifold replaced Mr Auchincloss with Meg O’Neill – the company's fifth chief executive in six years – whom BP “has been very impressed with”, and who is “building a simpler, stronger, more valuable BP”, Monday's statement said. “She has extensive industry and operational experience and real clarity about the direction and opportunity for the business,” BP added.
BP shares slid as much as 9 per cent on the FTSE 100, before paring those losses to about 5 per cent at 2.30pm UK time. Mr Manifold's firing sparks concerns about issues within the upper echelons of BP, said Justine Leigh-Bell. chief executive of the Anthropocene Fixed Income Institute in Stockholm.
“This is not simply a story about strategy, but about governance, execution and credibility. When a board is forced into immediate action over 'governance oversight and conduct issues', it raises the question of whether the company has had the stability, judgment and discipline required to manage a sector facing structural transition risk,” she said.
“For long-term investors, that matters. BP has already spent years oscillating between transition ambition and fossil fuel entrenchment, while some shareholders push for faster returns and management tries to reset the narrative. But the underlying risk has not gone away.”
