BP ousts chair Albert Manifold over conduct

BP (BP.L)’s board has removed Albert Manifold as chairman and director with immediate effect, citing what it described as serious concerns related to important governance standards, oversight and conduct. The company said the board had unanimously decided that Manifold should no longer serve as chair and director.

In its statement, BP did not provide further detail on the specific governance or conduct issues involved. The removal was presented as an immediate step, without a transition period, underscoring the board’s decision to change leadership at the top of the company’s governance structure.

The board said Manifold’s ouster followed serious concerns about governance standards, oversight and conduct. These issues were described as relating to important aspects of how the company is overseen and governed, but no additional explanation was given in the company’s communication.

Amanda Blanc, BP’s senior independent director, said the board had been surprised and disappointed to learn of governance, oversight and conduct issues it deemed unacceptable. She added that the board had taken decisive action in response, reflecting the directors’ collective view on the severity of the concerns.

Alongside Manifold’s removal, BP appointed Ian Tyler as interim chair with immediate effect. The company said Tyler will hold the role on an interim basis while the board organizes the process to select a permanent chair.

BP stated that a succession process to appoint a new permanent chair is set to get underway. No timeline or shortlist for the permanent role was disclosed, but the board emphasized that the formal search would begin following the abrupt leadership change.

The announcement of Manifold’s removal and the governance concerns triggered a sharp immediate reaction in BP’s share price. London-listed BP shares fell as much as 9% after the news broke, reflecting investor unease over the sudden board-level change and lack of detailed disclosure on the issues cited.

As trading progressed, BP’s shares pared some of those losses, closing with a smaller decline. According to the company’s summary of market moves, the stock was down around 5.8% after recovering part of the initial drop, indicating that while the sell-off moderated, investors continued to price in the governance shock.

The board’s decision, its unanimous nature and the appointment of an interim chair highlight a rapid shift in BP’s governance arrangements. The company has signaled that strengthening oversight and addressing the issues referenced in its statement are now priorities for the board.

With Ian Tyler stepping in on an interim basis and a formal succession process beginning, BP’s next steps will focus on stabilizing its leadership at the chair level while responding to investor scrutiny prompted by the abrupt change and the concerns over governance and conduct.