In a dramatic turn of events, BP has removed its chairman Albert Manifold with immediate effect, citing severe concerns regarding his conduct, including reported bullying and overbearing behaviour. The decision, described by insiders as significant, has sent ripples through the oil giant, which is currently navigating a volatile market buoyed by high oil prices amid geopolitical tensions.
The company formally stated that Manifold’s dismissal was initiated due to "serious concerns" regarding vital governance standards and oversight, emphasizing the board's unified stance on his abrupt removal, which comes less than a year after his appointment. Senior independent director Amanda Blanc expressed her surprise and disappointment over the issues deemed unacceptable, signalling a decisive response from the board.
Shares in BP plummeted by approximately 5% following the announcement, reflecting investor unease. Manifold's tenure began in September 2025, initially aimed at redirecting the company’s strategic priorities back to oil and gas, following a strong reliance on renewable energy under previous leadership.
Manifold's ousting coincides with a notable surge in BP's profits, which more than doubled as the conflict in Iran has led to skyrocketing oil prices. The company reported profits of $3.2 billion (£2.4 billion) for the first quarter, attributed largely to exceptional performance in oil trading. Nevertheless, governance concerns have loomed large, particularly after nearly 20% of shareholders voted against his election during the recent annual general meeting—a move largely seen as a response to governance criticisms related to the omission of a climate activist resolution.
Investment director Russ Mould from AJ Bell observed that discontent among investors regarding governance issues was apparent, especially considering the significant shareholder dissent faced at the AGM. These issues, coupled with controversies over the company’s shift towards a digital AGM format, have stirred frustration within the investor community.
In the wake of Manifold's departure, Ian Tyler has been appointed as interim chair, pledging to maintain the strategic direction laid out by the board. He expressed confidence in Chief Executive Meg O'Neill, who has been praised for her swift and bold moves to streamline the organization since taking the helm in December.
Industry analysts, while noting the implications of Manifold’s short tenure, believe his impact was necessarily limited. "It's a short-term negative," said Maurizio Carulli, global energy analyst at Quilter Cheviot, yet emphasized that BP's operational improvements results from a collective effort rather than the influence of any single individual.
This latest upheaval in BP’s leadership comes as the company faces increasing scrutiny, particularly regarding its environmental policies amidst rising oil prices and market volatility, leaving industry watchers speculating on the potential future direction of this major player in the energy sector.
For updates, stay tuned to BP's ongoing developments as they search for a permanent chair to lead them through turbulent waters.
Source: BBC Business
