BP's board has ousted Chairman Albert Manifold less than a year after he took the role, citing what it called 'serious concerns' over his actions related to governance, oversight, and personal conduct. The unanimous decision, announced Tuesday, marks a stunning reversal for the oil giant, which had brought Manifold on board last October to help steer its energy transition strategy.
In a statement, Senior Independent Director Amanda Blanc said the board was 'surprised and disappointed' to learn of the issues, which it deemed 'unacceptable.' She added that Manifold had initially brought 'welcome focus and pace' to BP's transformation but declined to specify the nature of the concerns. A company spokesperson told The Hill that no further details would be released at this time.
Manifold, previously CEO of Dublin-based building materials firm CRH, had been tasked with overseeing BP's strategic shift as the company faced pressure from both investors and environmental groups. His removal comes as BP navigates a turbulent period marked by declining profits, partly due to the broader downturn in global energy markets exacerbated by the ongoing Iran conflict.
The board has appointed Ian Tyler as interim chair effective immediately. Tyler, a longtime board member, emphasized that the company's leadership remains focused on its strategic direction under new CEO Meg O'Neill, who replaced Murray Auchincloss last month. Auchincloss stepped down at the end of last year after criticizing BP for moving 'too far and too fast' on renewables, a stance that had sparked debate within the industry.
O'Neill has since moved to restructure the company, announcing a shift to a clearer upstream/downstream model. Tyler expressed confidence in her leadership, stating that she has already taken 'bold action' to simplify and strengthen the organization. 'Under her leadership we are building a simpler, stronger, more valuable bp,' he said.
The shakeup at BP's boardroom comes amid broader political and economic headwinds. The company's profits have been squeezed by falling oil prices and geopolitical instability, including the Iran war, which has disrupted supply chains and energy markets. This upheaval has drawn comparisons to past crises, such as the warnings issued by the WSJ Board about the economic risks of the Iran deal.
BP's governance crisis also echoes broader concerns about corporate accountability in the energy sector. The company's decision to remove its chairman so swiftly underscores the board's determination to maintain credibility with shareholders and regulators. However, the lack of transparency about the specific conduct issues may invite further scrutiny from investors and oversight bodies.
As BP searches for a permanent chairman, the company faces the dual challenge of restoring confidence in its leadership while executing its energy transition plans. The interim chair, Ian Tyler, has extensive experience in the industry and is expected to provide stability during the transition.
