BP deposes chairman over governance concerns – Daily Business

Albert Manifold took on the chairman’s role last October

Energy giant BP has removed Albert Manifold as chairman with immediate effect following “serious concerns related to important governance standards, oversight and conduct”.

Mr Manifold only took up the role last October and is the latest executive to leave in two decades of management turmoil at the company.

Last month, 18% of shareholders who voted at the annual general meeting opposed his election.

Shareholder advisory group Glass Lewis had called for them to vote against him due to concerns over governance. It claimed that BP had taken “unprecedented action” in refusing to table a resolution filed by Follow This, the Dutch climate activist and shareholder advocacy group.

However, he did receive support from ISS, another proxy adviser. He was also supported by other large investors, including Norges Bank, which manages the Norwegian sovereign wealth fund and is among BP’s five largest shareholders.

Dame Amanda Blanc, senior independent director at BP, today 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.”

The board has appointed Ian Tyler as interim chair with immediate effect. He said: “The board and leadership team have deep conviction in the strategic direction we have laid out and the company is moving at pace to deliver it.”

Maurizio Carulli, global energy analyst at Quilter Cheviot, said: “The announcement of Albert Manifold’s departure is certainly a surprise, albeit BP has had more than its fair share of senior personnel leaving the company abruptly over the past 20 years, including former CEOs Lord Browne, Tony Hayward, Bernard Looney and Murray Auchinchloss, albeit all with very different individual circumstances leading to their departure.

“Whilst the news is obviously a short-term negative, it is important to remember that BP has made significant operational improvements and strategic refocusing over the past year, and this is the result of the successful efforts of the entire organisation and its management, not just of one person.

“Furthermore, Albert Manifold had been chair for only eight months, so apart from being part of the board’s decision to appoint new CEO Meg O’Neill, his impact was necessarily limited by the short period of time being in the role.”

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