Key Takeaways:
- BP removed Chairman Albert Manifold over unacceptable conduct and bullying allegations.
- The shock firing wiped £3.5 billion off BP’s market value as shares fell 4.5%.
- The board named Ian Tyler as interim chair to steady the company’s oil and gas pivot.
Oil major BP removed Chairman Albert Manifold with immediate effect on Tuesday after the board cited “serious concerns” over governance oversight and conduct, triggering a sharp fall in the company’s shares amid broader market volatility linked to rising oil prices.
BP Board Removes Chair Over Conduct Concerns
BP said the board acted after discovering issues it considered “unacceptable” involving governance standards, oversight, and conduct. The company did not disclose further details about the allegations.
Senior independent director Amanda Blanc said the board was “surprised and disappointed” by the findings and had taken “decisive action.”
Albert Manifold, the former chief executive of building materials company CRH, became BP chair in July 2025 as the company shifted focus back toward oil and gas production while reducing green energy spending.
His removal came less than a week after nearly 18% of shareholders voted against his re-election at BP’s annual meeting, signaling investor dissatisfaction over governance and climate-related strategy.
BP Shares Fall As Oil Prices Climb
BP shares dropped as much as 9% shortly after the announcement in London trading before recovering partially to close down about 4.5%. The decline erased more than 3.5 billion pounds ($4.7 billion) from the company’s market value.
The wider energy market also remained under pressure as Brent crude oil prices climbed back toward $100 a barrel amid escalating tensions between Iran and the U.S., as well as ongoing U.S.-Iran negotiations in Qatar.
Rising oil prices pushed average UK petrol prices to their highest level since December 2022, increasing concerns that consumers could face elevated inflation for months.
At the same time, the benchmark FTSE 100 index rose as investors weighed the potential economic impact of the Middle East crisis and falling UK government bond yields.
Investors Raise Questions About BP Governance
Analysts and investors said BP’s leadership instability has intensified scrutiny of the company’s governance practices and long-term strategy.
Lindsey Stewart of investment research firm Morningstar said BP now has “the most volatile boardroom of the oil supermajors.”
Stewart criticized BP’s recent decision to block a shareholder proposal requiring the company to explain how it would protect shareholder value if demand for oil and gas declines.
“With a resurgent share price so far this year, BP should be taking credit for the rewards of its strategic reset,” Stewart said. “Instead, the company is on its third CEO and now its third chairman in under three years.”
Some directors viewed Albert Manifold as overly aggressive in board discussions, though BP has not commented publicly on those claims.
The company has not announced a permanent replacement for Manifold. Interim leadership arrangements are expected to be outlined in the coming days as BP attempts to reassure investors and stabilize governance at one of Europe’s largest energy companies.
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