Who is Albert Manifold and why did BP remove him as chairman?

British energy giant BP has abruptly sacked chairman Albert Manifold less than a year after he appointed him to the post, citing serious concerns about management standards, oversight and conduct.

The unexpected move marks the latest leadership change at BP at a time when the company is grappling with boardroom debates, strategic shifts and mounting shareholder pressure.

Why did BP remove Albert Manifold?

BP announced on Tuesday, May 26, that its board of directors unanimously decided that Manifold should resign as president and director “with immediate effect.”

In a statement, the company said the decision: “Serious concerns have been raised with the board regarding key governance standards, oversight and conduct.”

The company did not disclose specific details about the alleged problems.

Senior independent director Amanda Blanc said the board took action after learning of behavioral and oversight issues it found unacceptable.

“Albert has helped bring welcome focus and momentum to BP’s transformation,” said Blanc.

He added: “The board was surprised and disappointed to learn of governance oversight and issues it found unacceptable and took decisive action.”

BP appoints Ian Tyler as interim chairman

Following Manifold’s departure, BP appointed Ian Tyler as interim chairman.

Tyler, who joined BP’s board last year, previously ran British infrastructure group Balfour Beatty.

BP said a formal search for a permanent seat was ongoing.

Tyler tried to reassure investors about the future direction of the company.

“The board and leadership team have deep belief in the strategic direction we have laid out,” Tyler said.

He added: “BP has a track record of strong underlying operational performance and a tight focus on financial discipline.”

BP shares fell after the announcement

Investors reacted harshly to the sudden leadership change.

BP shares fell nearly 10% shortly after the announcement and later recovered some of their losses in trading. The stock remained among the worst performers on London’s FTSE 100 index.

Analysts suggested that uncertainty surrounding the allegations contributed to the market’s harsh reaction.

“Unfortunately, this is not the first time BP has been embroiled in boardroom controversy,” Interactive Investor’s Richard Hunter told AFP.

He added: “Some uncertainty may remain until the details leading to the separation are known.”

Who is Albert Manifold?

Manifold joined BP in October after spending a decade leading Irish construction materials giant CRH.

Despite having no previous energy sector experience, he is credited with restructuring CRH’s business portfolio and moving its main listing from Ireland to the United States.

BP hired him at a time of poor shareholder performance and persistent speculation about possible takeover attempts by rivals such as Shell.

BP’s strategy change caused tensions among investors

Manifold took over during a major strategic reset at BP.

The company had previously attempted to aggressively expand its renewable energy investments but later reversed course and focused on oil and gas production.

Former CEO Murray Auchincloss argued last year that BP was moving “too far, too fast” in renewable energy.

The reversal sparked criticism from environmental groups and some shareholders.

While investors rejected two company-backed resolutions at BP’s annual general meeting earlier this year, Manifold received only around 82% support during the approval vote; This was an unusually low rate for a large company executive.

BP’s recent leadership turmoil

Manifold’s sacking is the latest in a series of high-profile leadership disruptions at BP.

In 2023, former CEO Bernard Looney was fired for failing to fully disclose his personal relationships with colleagues to the board.

Looney replaced former BP chief Bob Dudley in 2020.

Auchincloss then resigned abruptly in December without making a detailed public statement.

BP later appointed former Woodside Energy CEO Meg O’Neill to accelerate the company’s renewed focus on fossil fuels.

O’Neill becomes BP’s fifth CEO since 2020.

(With inputs from AP, Reuters, AFP)