Former BP Chairman Dismissed Over Governance Issues
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: CNBC
- Chairman Dismissal: BP's board announced the removal of Albert Manifold due to 'serious concerns' regarding governance standards and conduct, with his tenure lasting only seven months, highlighting vulnerabilities in the company's governance structure.
- Governance Issues Exposed: Allegations of aggressive behavior towards colleagues during Manifold's tenure have surfaced, raising significant questions about BP's corporate governance, which could potentially undermine investor confidence moving forward.
- Stock Price Reaction: Following the dismissal announcement, BP's London-listed shares fell by 1.7% on Wednesday morning, reflecting market concerns over governance issues that may negatively impact future performance.
- Manifold's Response: In his statement, Manifold denied the allegations against his conduct and emphasized his commitment to driving change at BP, indicating that the divergence with the board could lead to internal instability within the company.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 41.590
Low
6.38
Averages
84.26
High
503.69
Current: 41.590
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. Its segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. The gas & low carbon energy comprises regions with upstream businesses that predominantly produce natural gas, gas marketing and trading activities and its solar, wind and hydrogen businesses. The oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. The customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle (EV) charging, as well as Castrol, aviation and business-to-business (B2B) and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. The other businesses and corporate also comprises the Company's shipping and treasury functions, and corporate activities worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shifting Market Dependence: As Europe reduces its reliance on Russian energy, Azerbaijan's energy reserves have become increasingly important, and BP's new project will help it secure a more advantageous competitive position in the European market.
- Significant Production Contribution: Azerbaijan's production currently accounts for about 20% of BP's total global hydrocarbon output, and the operation of the Babek gas field will further increase this percentage, enhancing the company's overall production and revenue potential.
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- Management Turmoil: Manifold's tenure lasted only eight months, marked by aggressive interactions with colleagues, reflecting internal challenges BP faces as it pivots back to traditional oil and gas amid a broader transformation.
- Shareholder Rebellion: Prior to his dismissal, 81.8% of shareholders supported Manifold's re-election at BP's annual general meeting, indicating significant investor dissatisfaction and concerns over the company's governance and future direction.
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See More
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- Employee Relations Strain: Sources indicated that Manifold's aggressive behavior towards employees and mishandling of sensitive information could lead to decreased internal trust, negatively impacting employee morale and productivity.
- Board Decision Acceptance: While Manifold accepted the board's decision to remove him, he expressed dissatisfaction with anonymous comments, arguing that such practices should not be tolerated, potentially sparking further discussions on governance transparency and accountability.
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See More
