BP leadership exits reignite questions over board structure, oversight
CEO of BP Meg O’Neill attends a UK-U.S. trade event with King Charles III at Bar SixtyFive at Rockefeller Center during a state visit on April 29, 2026 in New York City.
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BP is on its third CEO and third chairman in under three years, prompting investor scrutiny of the structure and oversight of its board as the oil major works to turn itself around and adapt to the supply shock.
Weeks after CEO Meg O’Neill started in April, the chairman, Albert Manifold, was suddenly dismissed in late May. The board said this was due to “serious concerns” relating to governance standards, oversight and conduct.
Manifold said he had been fired “without warning and without explanation,” adding he disputes “entirely the characterisation” of his conduct.
One of the oil supermajor’s top active investors told CNBC that some may be in danger of missing the bigger picture, while an activist shareholder said the company urgently needed to address the reasons for the turnover.
‘A chaotic period of leadership turnover’
Nick Mazan, oil and gas strategy lead at activist shareholder ACCR, said BP had to provide “a clear and honest reflection” about the selection process that led to Manifold’s appointment.
“The nomination process appears to be dysfunctional. No large cap company should have had three CEOs and chairs in as many years,” Mazan told CNBC by email.
“There are understandably major questions about whether the board, as presently constituted, having presided over a chaotic period of leadership turnover, is up to the task of identifying a new chair and challenging the CEO on the current strategy of increased upstream spending,” he continued.
William Lin, executive vice president, regions, corporates & solutions of BP Plc, attends India Energy Week 2023 in Bengaluru, India, on Monday, Feb. 6, 2023.
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“It’s difficult to see how the company can rebuild trust and confidence with investors. A more active role from shareholders in the board nominations process may be required.”
When asked for comment, BP referred CNBC to comments by Ian Tyler, the firm’s interim chair, who said on the day of Manifold’s dismissal: “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.”
O’Neill is seeking to simplify the company’s structure by returning to an upstream and downstream model, part of a pivot away from renewables and back to its core business of oil and gas.
The company said Tuesday that Gordon Birrell will lead its upstream unit, which focuses on oil and gas, and Richard Harding will be interim head of the downstream unit, which includes refining, terminals, biofuels, and aviation.
Long-standing executive William Lin will leave later this year, the company announced last week.
Brian Kersmanc, portfolio manager at GQG Partners, one of BP’s largest active investors, said investors were “missing the forest for the trees” over the…
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