British energy giant has abruptly removed chairman Albert Manifold less than a year after appointing him, citing serious concerns related to governance standards, oversight and conduct.
The unexpected move marks the latest leadership upheaval at BP as the company struggles with boardroom controversies, strategic shifts and mounting shareholder pressure.
Why did BP remove Albert Manifold?
announced on Tuesday (May 26) that its board had unanimously decided Manifold should step down “with immediate effect” as chair and director.
In a statement, the company said the decision followed: “Serious concerns raised to the board related to important governance standards, oversight and conduct.”
The company did not disclose specific details about the alleged issues.
Senior independent director Amanda Blanc said the board acted after learning of conduct and oversight problems it considered unacceptable.
“Albert has helped bring a welcome focus and pace to BP’s transformation,” Blanc said.
She added: “The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.”
BP names Ian Tyler as interim chairman
Following Manifold’s exit, BP appointed Ian Tyler as interim chairman.
Tyler, who joined BP’s board last year, previously led British infrastructure group Balfour Beatty.
BP said a formal search for a permanent chair is now underway.
Tyler attempted to reassure investors about the company’s future direction.
“The board and leadership team have deep conviction in the strategic direction we have laid out,” Tyler said.
He added: “BP is building a track record of strong underlying operational performance and a tight focus on financial discipline.”
BP shares plunge after announcement
Investors reacted sharply to the sudden leadership change.
BP shares fell nearly 10% shortly after the announcement before recovering some losses later in trading. The stock remained among the worst performers on London’s FTSE 100 index.
Analysts suggested uncertainty surrounding the allegations contributed to the sharp market reaction.
Richard Hunter of Interactive Investor told AFP: “Unfortunately this is not the first time that BP has been embroiled in boardroom controversy.”
He added: “Some uncertainty may remain until the details leading to the departure are known.”
Who is Albert Manifold?
Manifold joined BP in October after spending a decade leading Irish building materials giant CRH.
Although he had no previous energy industry experience, he built a reputation for restructuring CRH’s business portfolio and shifting its main stock market listing from Ireland to the United States.
BP recruited him during a period of weak shareholder performance and persistent speculation about possible takeover attempts by rivals such as Shell.
BP’s strategy shift sparked investor tensions
Manifold took over during a major strategic reset at BP.
The company had previously attempted to aggressively expand renewable energy investments but later reversed course and returned focus to oil and gas production.
Former CEO Murray Auchincloss argued last year that BP had moved “too far and too fast” into renewables.
The reversal triggered criticism from environmental groups and some shareholders.
At BP’s annual general meeting earlier this year, investors rejected two company-backed resolutions, while Manifold received only about 82% support during his confirmation vote — unusually low for a major corporate director.
BP’s recent leadership turmoil
Manifold’s removal is the latest in a series of high-profile leadership disruptions at BP.
In 2023, former CEO Bernard Looney was fired after failing to fully disclose personal relationships with colleagues to the board.
Looney had replaced former BP chief Bob Dudley in 2020.
Auchincloss later stepped down abruptly in December without a detailed public explanation.
BP then appointed former Woodside Energy CEO Meg O’Neill to accelerate the company’s renewed focus on fossil fuels.
O’Neill became BP’s fifth CEO since 2020.
(With inputs from AP, Reuters, AFP)