Ousted BP chair Manifold hires lawyers as shares lose £5bn

BP removed Albert Manifold as chairman after eight months over governance and conduct issues, triggering a two-day selloff that erased about £5bn from the company's market capitalization.

"I dispute entirely the characterisation of my conduct and I will not allow a false narrative to go unchallenged," Manifold said in an emailed statement, adding that he was removed "without warning and without explanation."

The former CRH chief executive hired Mishcon de Reya, the law firm that also represents climate activist group Follow This in its dispute with BP, according to a person familiar with the matter. BP shares fell 3.5% on Wednesday after plunging 10% on Tuesday when the ouster was announced.

The ouster marks the latest upheaval in BP's leadership, which has cycled through three chief executives and three chairmen since 2020, casting doubt on the stability of the company's strategic pivot back toward fossil fuels under new CEO Meg O'Neill.

Manifold, who took the chairman role in October 2024 after Helge Lund's departure, was tasked with overseeing BP's strategic shift away from renewable energy and back toward oil and gas extraction. The board said it was "surprised and disappointed to learn of governance, oversight and conduct issues it deems unacceptable."

The allegations against Manifold include a "volcanic" temper, bullying and verbal abuse of staff, according to people familiar with the board's concerns. BP also flagged governance breaches related to Manifold emailing documents — including a board meeting agenda — outside the company. People close to Manifold said the issue stemmed from a known malfunction in BP's IT system and involved no sensitive information.

Manifold is exploring legal options over concern that BP may withhold severance payments, following the precedent set by former CEO Bernard Looney, who forfeited £32m in pay awards after being ousted in 2023 for misleading the board about past relationships with colleagues. A source close to Manifold described him as "shell-shocked" by the dismissal, which was announced to the stock market just hours after he was informed.

Ian Tyler, a former CEO of BAE Systems, has been appointed interim chair with immediate effect. "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," Tyler said in a statement.

The leadership churn comes at a critical juncture for BP as it seeks to narrow the valuation gap with rivals. BP's market value has fallen to about £65bn, trailing Shell's £170bn and Exxon Mobil's $480bn market capitalization. The company has had five CEOs including interim appointments since 2020, compared with two at Shell and one at Exxon over the same period.

Iain Pyle, senior investment director at Aberdeen Investments, said Manifold's exit had created "difficult headlines for BP given the level of management change in the recent past," but added that "the board have acted appropriately."

The next challenge for BP's board will be finding a permanent chair who can provide stability while overseeing the strategic pivot championed by O'Neill, who took over as CEO in April. The company's annual general meeting in April saw climate activist group Follow This attempt to force a shareholder vote on emissions targets, a resolution BP excluded from the agenda.

This article is for informational purposes only and does not constitute investment advice.