In a surprising turn of events, former BP Chairman Albert Manifold has publicly challenged the characterizations surrounding his recent dismissal from the energy giant. Following his abrupt exit from the role, Manifold issued a statement to CNBC asserting that he was removed “without warning and without explanation.” He has vehemently denied the accusations regarding his conduct, which BP’s board cited as the reason for their decision.
The statement from BP’s board outlined “serious concerns” related to governance standards, oversight, and conduct, leading to Manifold’s termination. Amanda Blanc, BP’s senior independent director, expressed both gratitude for Manifold’s contributions during his brief tenure and disappointment in discovering issues deemed unacceptable pertaining to governance and oversight. Reports from various media outlets have alleged that Manifold exhibited aggressive behavior towards colleagues during his time in office, which spurred internal concerns.
Manifold, having served as chair for just seven months, previously held the position of CEO at Irish building materials firm CRH. His quick dismissal has reignited questions regarding BP’s corporate governance amid a significant strategic shift within the company. He stated, “During my time as chairman I worked to drive genuine change at BP – cutting costs, challenging excess, and holding the organisation to higher standards.” He emphasized his intent to contest the narrative surrounding his departure.
On the financial front, BP’s shares experienced a 1.4% drop on Wednesday morning, continuing a downward trend that began the previous session when the stock slid 4%. Analysts noted that this market reaction might reflect investor apprehension stemming from governance concerns.
Manifold’s tenure faced turbulence prior to his firing, having recently encountered a shareholder revolt. At BP’s annual general meeting, a substantial 81.8% of shareholders voted in favor of electing him as chair, but this vote followed a contentious proposal from the Dutch activist group Follow This, which was blocked. Historically, board members often garner nearly unanimous support, making the 18.2% opposition to Manifold’s election particularly notable.
He had previously defended the board’s decisions at the AGM, stating that all resolutions were made with integrity and aimed at enhancing shareholder value. The announcement of his departure blindsided many observers, especially given BP’s current trajectory involving a pivot back to oil and gas, guided by the new CEO Meg O’Neill, a former leader at Woodside Energy.
O’Neill has characterized her new role as “a privilege and an honor,” particularly against the backdrop of BP’s first-quarter profits showing remarkable improvement, bolstered by rising oil and gas prices due to geopolitical tensions in the Middle East.
As the situation unfolds, climate advocacy group ACCR has urged BP’s board to offer a comprehensive explanation regarding the circumstances leading to Manifold’s exit, while Follow This emphasizes the need for the incoming chair to possess relevant expertise in governance and risk management related to climate transition.
