BP Shares Tumble as Chairman Albert Manifold Ousted in Governance Scandal

BP (LON: BP.) shares slumped sharply on Tuesday after the oil major’s board unanimously voted to remove chairman Albert Manifold with immediate effect, citing serious governance and conduct failings less than eight months into his tenure.

Shares in the FTSE 100 energy giant plunged early trading before paring losses to close down around 4% at 529p, adding to a bruising period for the company’s long-suffering investors.

BP said the decision followed “serious concerns related to important governance standards, oversight and conduct.” Senior independent director Amanda Blanc — who had overseen Manifold’s appointment in October — described the board as “surprised and disappointed” by the findings, saying it had taken “decisive action.”

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Acording to a report form Reuters, four sources familiar with the matter saidthe removal stemmed from alleged aggressive and unacceptable behaviour toward colleagues across the company, with the board acting after receiving a whistleblower report that established what one source described as “a pattern of unacceptable behaviour.”

Manifold, who made his name as chief executive of building materials group CRH — where he orchestrated a high-profile shift of its primary listing to the US — had no prior experience in the energy industry before joining BP. He was brought in amid persistent takeover and break-up speculation following years of share price underperformance relative to peers.

His departure is the latest in a string of senior leadership upheavals at BP. Former CEO Bernard Looney was fired in 2023 for lying to the board, while his successor Murray Auchincloss departed abruptly in December with no explanation given. Meg O’Neill, formerly of Woodside Energy, is BP’s fifth CEO since 2020.

Ian Tyler, a former chief executive of Balfour Beatty and a BP board member since last year, has been named interim chairman while the company searches for a permanent replacement.