BP leadership shake-up escalates: Former chairman slams “unexplained dismissal,” stock price hit again

BP's corporate governance crisis has intensified once again. After Chairman Albert Manifold was suddenly dismissed, he publicly fought back, accusing the board of "no warning, no explanation" for his removal, vowing not to sit by and let "false narratives" spread. This rare public confrontation has fueled a new round of doubts about the strategic stability of the British oil giant. According to Bloomberg's latest report, BP's board cited "serious problems with governance standards, oversight and conduct" on May 27th in announcing Manifold's removal as chairman, appointing board member Ian Tyler as interim chairman. After the announcement, BP's London-listed shares fell 4% to 529 pence that day, then continued to be under pressure, approaching a post-announcement phase low. Manifold immediately issued a statement to Bloomberg and the UK Financial Times, responding forcefully: "I was removed from my position with no warning and no explanation." He "completely denies" the board's characterization of his conduct and claimed he "will not allow false narratives to go unchallenged." The personnel shakeup occurred only weeks after new CEO Meg O'Neill took office, further fueling concerns about BP's leadership stability and transformation prospects. Dismissal Reasons: Vague Governance Language, Serious Internal Accusations The BP board's statement was vague, announcing the dismissal on grounds of "governance standards, oversight and conduct" issues without revealing specific details. Bloomberg, citing insiders, reported the dismissal involved Manifold's "aggressive behavior" towards staff, improper handling of sensitive information, and attempts to bypass the board in decision-making. According to the Financial Times, a BP insider accused Manifold of bullying behavior, stating his conduct was "unacceptable" and violated company codes of conduct. BP's internal complaint hotline had received "multiple" reports against him. Several sources said Manifold's degree of company control was closer to an executive chairman than a non-executive chairman, sometimes bossing senior staff in both one-on-one and large meetings. One insider told the Financial Times that describing Manifold as someone who "loves to speak loudly" was an understatement, adding: "They thought they hired a tough change leader but ended up with a bully." Additionally, the Financial Times reported that sources said Manifold tried to limit O'Neill's chances to meet with BP's non-executive directors alone, which was seen as overstepping and interfering with CEO authority. BP declined to comment on whether it had received employee complaints or the duration of such complaints. The Person Involved Retaliates: Denies Accusations, Suggests Internal Exclusion Manifold denied all the above accusations and presented a completely different narrative. In his statement, he said that during his tenure as chairman, he had been committed to driving genuine change at BP—cutting costs, challenging waste, and insisting on higher standards for the organization, noting, "This morning's board statement also acknowledges the focus and momentum I brought." A person close to Manifold told the Financial Times he had been challenging excessive spending inside BP, which had made him enemies internally. The source said Manifold only learned of the existence of complaints upon being dismissed and believed he did not get a fair chance to respond to the accusations. Strategic Concerns: Transformation Driver Ousted, Analysts Warn Manifold's departure has raised doubts about the continuity of BP's transformation plans. Since becoming chairman last October, he was seen as the key driver of BP's strategic reset: leading the appointment of O'Neill as CEO, pushing asset sales and cost reductions, and shifting the company's focus away from a failed green energy bet back to oil and gas. This direction had won widespread approval from Wall Street analysts. Barclays analyst Lydia Rainforth wrote in a report: "We previously welcomed the outlook for transformation under Manifold's leadership, but we believe it is necessary to seriously question the broader board decision-making process." TD Cowen analyst Jason Gabelman noted: "We previously thought Manifold could be a change-driving force, including accelerating investment in core oil and gas assets and further business simplification. Continued leadership rotation at the very least raises doubts about the pace of transformation." Berenberg analyst Henry Tarr also wrote that Manifold's sudden departure "will spark external questions about company strategy and the reasons for ongoing executive turnover." Governance Dilemma: Three CEOs in Three Years, Leadership Turmoil Persists This personnel change is the latest chapter in BP's management turbulence in recent years. BP has seen three CEOs in less than three years: Bernard Looney was forced to resign in 2023 for not disclosing personal relationships with colleagues; Murray Auchincloss was replaced under Manifold's direction after less than two years; O'Neill formally took office on April 1 this year, becoming the first female CEO of a major oil company and BP's first externally hired top leader. Meanwhile, the chairman position has also changed hands three times. Lindsey Stewart, Director of Institutional Investor Content at Morningstar, said: "Against the backdrop of a strong share price rebound this year, BP should be celebrating the results of its strategic reset. However, the company has welcomed its third CEO and third chairman in less than three years. Clearly, straightening out corporate governance and strategy must become a top priority for the interim chairman and his successor." According to Bloomberg, ongoing leadership turmoil may reignite speculation that BP could become a takeover target. Last year's period of merger rumors led rival Shell to publicly state it was not interested in bidding; Shell has since announced a $13.6 billion acquisition of Canadian oil and gas producer ARC Resources. Interim chairman Ian Tyler said in a statement that the board has "great confidence" in the company's strategic direction and is "impressed" with O'Neill's performance since taking office. BP also announced it would begin the process of searching for a new permanent chairman. Risk Warning and Disclaimer The market has risks, investment must be cautious. This article does not constitute personal investment advice, nor does it consider individual users' specific investment goals, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. You invest accordingly at your own risk.