BP’s sudden removal of chairman Albert Manifold has unsettled investors and reignited concerns over governance and leadership stability.
Analysts also warned the episode could weigh on sentiment toward the oil major’s turnaround strategy and its stock in the near term.
The abrupt exit comes at a sensitive moment for BP as the company attempts to rebuild investor confidence, cut debt, boost shareholder returns, and re-emphasize oil-and-gas production after a turbulent push into renewable energy.
While several analysts said BP’s operational performance has recently shown signs of improvement, Manifold’s departure has raised fresh questions over board oversight and corporate culture.
It has also fueled concerns about whether the company’s strategic reset can continue smoothly without the chairman, who had become increasingly central to the investment narrative surrounding the stock.
Shares in BP fell sharply after the announcement, dropping more than 9% before recovering some ground.
The stock was still down more than 4% in London trading later in the session, while BP’s American depositary receipts also declined more than 4% in early US trading.
BP removes chairman over governance concerns
BP said Tuesday that its board had unanimously decided that Manifold should no longer serve as chairman and that he would leave the company immediately.
“The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action,” senior independent director Amanda Blanc said in a statement.
The company did not disclose additional details surrounding the allegations or explain the precise reasons behind the dismissal.
Manifold also did not immediately respond to requests for comment.
According to the Financial Times, which cited people familiar with discussions inside BP, several directors viewed Manifold as overly aggressive and uncomfortable to work with.
The report said some colleagues believed he exercised a level of control more typical of an executive chairman and at times spoke down to senior staff during both private interactions and larger meetings.
BP appointed board member Ian Tyler as interim chairman while it searches for a permanent replacement.
Another leadership upheaval at BP
Manifold’s departure marks the latest in a series of high-profile management disruptions at BP in recent years.
Former chief executive Bernard Looney resigned in September 2023 after the company said he had not been “fully transparent” about past relationships with colleagues.
“The announcement of Albert Manifold’s departure is certainly a surprise, albeit BP has had more than its fair share of senior personnel leaving the company abruptly over the past 20 years, including former CEOs Lord Browne, Tony Hayward, Bernard Looney, and Murray Auchinchloss, albeit all with very different individual circumstances leading to their departure,” said Maurizio Carulli, global energy analyst at Quilter Cheviot.
The repeated leadership upheavals are now prompting renewed scrutiny over BP’s governance processes and board decision-making.
Barclays analyst Lydia Rainforth said serious questions needed to be asked about how BP selected Manifold in the first place.
“While the reasons for his dismissal aren’t clear, his appointment appears to be another misstep by the board,” Rainforth wrote in a note.
She added that the “sheer number of personnel changes” at BP should concern investors.
Kathleen Brooks, research director at XTB, also questioned how the governance concerns had not surfaced during the hiring process.
“There was no detail as to what these breaches were, or when they occurred, and it leaves investors wondering how they weren’t unearthed during the hiring process,” Brooks said.
She noted that Manifold was the second major BP executive to leave due to conduct-related issues in just three years.
Questions emerge over BP’s strategic transition
The chairman’s removal has also intensified uncertainty over BP’s broader strategic direction.
Manifold had been brought in last year to oversee BP’s renewed emphasis on fossil fuels after investor dissatisfaction with the company’s earlier aggressive push into renewables.
The Irish executive, previously chief executive of CRH, had been viewed by many investors as a hands-on operator tasked with reviving BP’s lagging valuation and sharpening operational discipline.
Brooks said his departure could potentially delay or complicate the company’s transition back toward oil and gas.
“The news raises two questions for BP shareholders,” she said.
“Firstly, Manifold was brought in to spearhead the transition back to oil and gas, after a disastrous foray into renewables. Will his removal threaten his transition or delay this process?”
Brooks noted that Manifold had reportedly clashed with newly appointed chief executive Meg O’Neill, suggesting his departure could strengthen her position internally.
Still, she added that the leadership disruption came “at a high price and a lurch lower for the shares.”
Analysts weigh whether BP’s turnaround remains intact
Some analysts argued that despite the governance controversy, BP’s operational progress over the past year should not be overlooked.
The company has benefited from stronger oil prices during the Iran conflict and improved trading conditions in volatile energy markets.
It has also been attempting to improve shareholder returns while reducing debt levels.
Citi analyst Alastair Syme said Manifold had become unusually important to BP’s investment case in a way rarely seen among large international oil companies.
“The question is, has he done enough in his brief eight-month tenure — most notably removing the former CEO and hiring Meg O’Neill — that the investment pathway for the company is now largely set?” Syme wrote.
He suggested investors could ultimately decide that BP’s strategic direction remains intact despite the chairman’s removal.
Syme also pointed out that BP continues to trade at a significant discount to many European rivals.
According to Citi estimates, BP trades at roughly 5.6 times trailing enterprise value to debt-adjusted cash flow based on oil prices near $70 per barrel.
That represents a 5% discount to Shell and roughly a 30% discount to peers such as TotalEnergies and Eni.
Shell shares are currently trading near record highs, while BP’s stock has struggled to recover to levels seen before the global financial crisis.
Share weakness could attract buyers
RBC Capital Markets analyst Biraj Borkhataria said the sharp decline in BP’s shares reflected Manifold’s reputation as an “agent of change” within the company.
Still, he noted that if no financial misconduct emerges from the situation, prolonged share weakness could make BP more attractive to potential investors or buyers.
“While reasons for BP Chairman Albert Manifold’s removal are unclear right now, anything related to finances would likely have been noted in the release,” Borkhataria wrote.
Carulli also sought to reassure investors that BP’s recent improvements were not solely dependent on one executive.
“Whilst the news is obviously a short-term negative, it is important to remember that BP has made significant operational improvements and strategic refocusing over the past year,” Carulli said.
He added that the progress reflected “the successful efforts of the entire organisation and its management, not just of one person.”
For now, investors appear to be weighing two competing narratives — whether Manifold’s departure represents another destabilizing governance failure at BP, or merely a temporary disruption in a turnaround strategy that may already be firmly underway.
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