BP leadership exits reignite questions over board structure, oversight
BP CEO Meg O’Neill attends a UK-US trade event with King Charles III at Bar SixtyFive in Rockefeller Center during a state visit in New York on April 29, 2026.
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blood pressure This is its third CEO and third chairman in less than three years, prompting investors to scrutinize the composition and oversight of its board as the oil giant tries to turn around and adjust to the supply shock.
Weeks after CEO Meg O’Neill took over in April, chairman Albert Manifold was abruptly fired in late May. Board of Directors in question this was due to “serious concerns” about governance standards, oversight and conduct.
Manifold said he was fired “without warning or explanation”, adding that he completely disagreed with the “characterization” of his behaviour.
One of the oil giant’s largest active investors told CNBC that some may be in danger of missing the big picture, while an activist shareholder said the company must urgently address the reasons for the turnover.
‘A chaotic period of the leadership era’
Nick Mazan, oil and gas strategy leader at activist shareholder ACCR, said BP should provide a “clear and honest reflection” on the selection process that led to Manifold’s appointment.
“The nomination process appears dysfunctional. No major company should have had three CEOs and chairs in so many years,” Mazan told CNBC via email.
“There are understandably significant questions about whether the board, as currently constituted, presiding over a chaotic period of leadership change, has a duty to name a new chairman and challenge the CEO on the current strategy of increasing upstream spending,” he continued.
William Lin, vice president of regions, companies and solutions for BP Plc, attended India Energy Week 2023 in Bengaluru, India, on Monday, February 6, 2023.
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“It is difficult to see how the company can rebuild trust and confidence with investors. Shareholders may need to play a more active role in the board nomination process.”
When asked for comment, BP told CNBC that the firm’s interim chairman, Ian Tyler, referred to a comment made on the day of Manifold’s dismissal: “The Board and leadership team have deep belief in the strategic direction we have laid out, and the company is moving rapidly to deliver on it.”
O’Neill aims to simplify the company’s structure by returning to an upstream and downstream model as part of a shift away from renewables and back to its core business of oil and gas.
The company said Tuesday that Gordon Birrell will lead its manufacturing unit, which focuses on oil and gas, and Richard Harding will be interim head of its subdivision, which includes refining, terminals, biofuels and aviation.
Longtime executive William Lin will leave later this year, the company announced last week.
Brian Kersmanc, portfolio manager at GQG Partners, one of BP’s largest active investors, said investors were “missing the forest for the trees” due to staff departures.
“I think BP’s overall strategic direction and the progress it has already made are more impactful than personnel changes,” Kersmanc told CNBC via email. he said.
Kersmanc noted that BP boasts “extremely strong and diverse assets” and that the market values the company as a mid-sized shale oil producer rather than a globally integrated oil giant.
“We think the rate of free cash flow they can generate will increase, especially if we see higher energy prices for longer periods of time,” he added.
What does BP’s leadership turnover mean for investors?
Maurizio Carulli, global energy analyst at asset manager Quilter Cheviot, said Manifold’s sacking was unrelated to Lin’s departure and the impact was likely to be limited.
“While the news may be seen as negative in the short term, it is important to remember that BP has refocused its strategy and made significant operational improvements over the past year,” Carulli said. he said.
“These changes reflect the efforts of the broader organization and management team rather than being dependent on a single individual.”
John Browne, who was BP’s CEO for 13 years until 2007, told CNBC:Executive Orders” show that not all of the problems facing the oil industry are systemic.
He said “many things” had changed in the last 20 years, “particularly shareholders’ determination that the oil and gas industry should return to its roots and spend more of its capital.”
In a wide-ranging interview with Steve Sedgwick, Browne said BP needed to “stabilize for the future”. “It’s clear to me that leadership is stable unless it’s A grade, not B grade, A minus, A or A plus grade. You won’t get a good return,” Browne said.
Asked whether BP’s new CEO was an A-list leader, Browne said “it’s too early to tell.”
“I know Megan very well and I helped her out for a while when she was at Woodside and I wish her the best of luck. But ultimately you never can.” [know]. “It has great promise, but you can never talk about anyone until it’s all over,” he said.
When asked what the staff changes mean for investors, Quilter Cheviot’s Carulli said the multiple layers of management in such large organizations mean that “the departure of a single person, no matter how senior, should not materially impact the overall business.”
“It is important that BP’s board conducts a thorough and well-considered process to appoint a new chairman, including the lessons to be learned from the circumstances surrounding Albert Manifold’s departure,” he added.
