Albert Manifold was unexpectedly ousted as chairman of BP's board, effective immediately, after just eight months in the role.
In a statement on May 14, BP said the decision followed the board receiving “serious concerns” related to “important governance, oversight and conduct standards.” The London-based energy group did not detail the nature of these issues.
Manifold's departure comes amid a wave of leadership changes at BP. Three years ago, former CEO Bernard Looney was fired for lying about personal relationships with colleagues. His successor, Murray Auchincloss, also suddenly left in December for undisclosed reasons.
BP said the board unanimously concluded that Manifold — who had support from activist hedge fund Elliott, which holds about 5% of BP's shares — was no longer suitable to continue as chairman and board member, effective immediately.
“Albert helped bring necessary focus and pace to BP's transition. However, the board was surprised and disappointed to learn of governance and conduct issues which they consider unacceptable and have acted decisively,” said Amanda Blanc, the senior independent director who oversaw Manifold's appointment in October.
A BP spokesperson declined to provide further details. Reuters was unable to reach Manifold for comment. Elliott also declined to comment.
Ian Tyler, former chief of UK construction group Balfour Beatty and a BP board member since last year, will serve as interim chairman.
Under Manifold, BP's board had been shrinking. Shell's CFO Simon Henry, who joined BP in September, was among those who chose to leave. At the April shareholder meeting, the board failed to pass two resolutions, and Manifold's appointment as chairman also received less support than usual, with 82% of votes, well below the near-100% typical for directors.
Shares in BP fell sharply immediately after news of Manifold's ouster. In the US, shares dropped 4.2%, while on the London Stock Exchange, the decline was 4.4%.
