- Manifold became chair in October to oversee BP shift back to oil, gas
- BP has had five CEOs since 2020
- Shares fall almost 10% and briefly suspended
- Sources cite alleged unacceptable behaviour towards colleagues
May 26 (Reuters) - BP has ousted Chair Albert Manifold with immediate effect, it said on Tuesday, citing governance and conduct issues, with four sources alleging aggressive and unacceptable behaviour towards colleagues.
A BP spokesperson declined to give further details. Reuters could not immediately reach Manifold for a comment.
Just under eight months after he took office to help oversee a strategy revamp, Manifold's departure follows scandal and repeated leadership changes at BP. Less than three years ago, former BP CEO Bernard Looney was fired after lying to the board about personal relationships with colleagues.
With Manifold fresh in the job, Looney's successor Murray Auchincloss left abruptly in December, with no clear reason given for his exit. Former Woodside CEO Meg O'Neill was immediately announced as BP's fifth CEO since 2020 to accelerate the company's shift in focus back to oil and gas and away from renewable energy, a strategy change announced by Auchincloss early last year.
BP BOARD UNANIMOUSLY DECIDED TO OUST MANIFOLD
In a statement on Tuesday, BP said its board had unanimously decided that Manifold - who has had the backing of activist hedge fund Elliott, which has built up a stake of around 5% in BP - should no longer serve as chair and director with immediate effect.
"This follows serious concerns raised to the board related to important governance standards, oversight and conduct," BP said.
"Albert has helped bring a welcome focus and pace to BP's transformation. However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action," said senior independent director Amanda Blanc. Blanc oversaw Manifold's appointment in October.
Four sources with knowledge of the matter, including one close to BP's board, cited alleged unacceptable and aggressive behaviour with different colleagues across the company as one reason for Manifold's ouster. One source said the board had received enough information following a whistleblower report to ascertain that there was a pattern of unacceptable behaviour.
The sources declined to be named because they were not authorised to speak publicly.
Elliott declined to comment.
BP shares were down almost 10% after the announcement and their trading briefly halted. They later pared some losses to trade down around 4%. An index of European energy companies was down around 0.1%.
MANIFOLD WAS APPOINTED AMID TAKEOVER SPECULATION
Manifold, who had never held a job in the energy industry before BP, had made a name for himself as the chief at building materials producer CRH whose portfolio he reshaped. He also moved its primary listing from Ireland to the U.S. and the share price rose.
BP announced his appointment last year after years of share underperformance against its rivals had prompted persistent takeover and break-up speculation.
Under Manifold, BP's board shrank. Shell finance chief Simon Henry, who only joined BP in September, was among those leaving.
In April, at BP's annual general meeting, the board failed to get two of its resolutions accepted by shareholders and Manifold's appointment as chair got less support than typical.
While the board stood united at the AGM, proxy adviser Glass Lewis said at the time Manifold was ultimately accountable for BP's decision to exclude a resolution filed by climate activist group Follow This and thus recommended a vote against him. His appointment was confirmed by around 82% of votes, which is below a typical tally near 100% for directors.
Ian Tyler, a former chief of British construction group Balfour Beatty and on BP's board since last year, will be interim chair.
Additional reporting by Stephanie Kelly, Raechel Thankam Job in Bengaluru; Editing by Anil D'Silva, Barbara Lewis and Emelia Sithole-Matarise
Source: Reuters