BP descends into upheaval — again
BP’s chair came out on top in his first dust-up with the company’s chief executive. But in the second, it’s Albert Manifold who’s headed for the exit.
The British oil major announced on Tuesday that it was removing Manifold as chair, following “serious concerns” about his behaviour, including allegations of bullying.
“I was removed without warning and without explanation,” Manifold said through a spokesperson. “I dispute entirely the characterisation of my conduct and I will not allow a false narrative to go unchallenged.”
In the end, he lost a fierce battle of wills to steer the company.
Manifold was appointed as chair last July, replacing Helge Lund after six troubled years. He arrived just months after activist investor Elliott Management disclosed a significant stake in the group, which it has used to push for cost cuts and for BP to focus on its core oil and gas business.
Manifold swiftly launched a strategic review, seeking out Elliott as he attempted to radically reshape and slim down the company.
But he soon clashed with chief executive Murray Auchincloss over the changes, with BP replacing Auchincloss late last year.
In recent months, it seemed that the oil major, after facing perennial boardroom turmoil and abandoning its green transition, was finally regaining its footing.
The chair was critical in convincing Meg O’Neill to become chief executive to steady the ship. She moved quickly, splitting BP into two main business units, in a return to the oil major’s structure before it tried to transform itself into a renewable energy company.
But Manifold and O’Neill clashed as well.
One person with knowledge of the matter claimed he had attempted to restrict O’Neill’s ability to meet independently with BP’s non-executive directors. O’Neill, who only started in April, forged a reputation as a tough operator as head of Woodside Energy and is said to have bristled at challenges to her authority.
She is a member of the board which BP said ultimately made a “unanimous” decision to remove Manifold.
The upheaval is raising questions about the board’s ability to see through the strategic overhaul of the company that Elliott and Manifold were championing. Critics see it as a sign that BP has become almost ungovernable, having now replaced two chief executives and two chairs in the past three years.
Others hope it’s a sign that a new chief executive might finally be getting a grip on a company that has faced ongoing turmoil, even if they accept that Manifold helped foster the turnaround that has helped BP’s shares rise more than 20 per cent since he joined.
DD suspects BP knows the temperature will increase on its long-running revitalisation plans, especially after it sacked a chair supported by activist shareholder Elliott.
The turmoil also raises the question of whether BP, long a target for outside interest, including from rival UK oil major Shell, might again be back in play just as takeover speculation had begun to die down.