BP abruptly removed Chairman Albert Manifold on Tuesday, citing “serious concerns” tied to governance, oversight and conduct issues, sending shares lower and deepening uncertainty at the oil giant.
The company said Manifold, who had served as chairman for just eight months, was removed effective immediately after the board unanimously concluded he should no longer remain in the role.
“This follows serious concerns raised to the board related to important governance standards, oversight and conduct,” BP said in a statement, without providing additional details.
The surprise ouster rattled investors. BP shares plunged nearly 10% in London trading and were briefly halted before recovering some losses. The broader European energy sector was down less than 1%.
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The shake-up lands at a critical moment for BP, which has struggled with investor confidence, lagging stock performance and questions about its long-term strategy.
Manifold was brought in last October to help oversee BP’s pivot back toward oil and gas production after years of aggressive climate-focused messaging and renewable energy investments that frustrated some shareholders.
The former CRH chief executive, who had no prior energy industry experience, had support from activist hedge fund Elliott Management, which has built a roughly 5% stake in BP and pushed for stronger financial performance.
Manifold also helped install current CEO Meg O’Neill, the former Woodside Energy chief, as BP’s fifth CEO since 2020.
BP has been plagued by executive instability in recent years. Former CEO Bernard Looney was fired in 2023 after admitting he misled the board about relationships with colleagues. His successor, Murray Auchincloss, exited abruptly in December.
The repeated management upheaval has fueled persistent speculation that BP could eventually become a takeover target or face pressure to break itself apart.
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The latest boardroom drama also comes as major oil companies increasingly prioritize shareholder returns and fossil fuel production over costly green-energy expansion plans amid pressure from investors demanding higher profits and stronger stock performance.
Reuters contributed to this report.