BP Shares Plunge After Sudden Dismissal of Chairman over Governance Concerns

Shares of British energy giant BP fell sharply on Tuesday after the company abruptly dismissed Chairman Albert Manifold, citing what it described as “serious concerns” related to governance, oversight, and conduct.

The company’s London-listed stock dropped by as much as 9% in early trading following the announcement before recovering some losses. Shares were last trading down more than 5.8%, reflecting investor unease over the unexpected leadership shake-up.

In a brief statement, BP said Manifold’s removal took immediate effect but declined to disclose further details surrounding the allegations or internal findings that led to the decision.

Amanda Blanc, BP’s senior independent director, said the board had been “surprised and disappointed” upon learning of issues it considered unacceptable.

“Albert brought much-needed focus and urgency to BP’s transformation process,” Blanc said. “However, the board became aware of governance, oversight, and conduct matters that required decisive action.”

The company appointed Ian Tyler as interim chairman effective immediately and confirmed that a formal search process for a permanent replacement would begin shortly.

Tyler sought to reassure investors, saying the board and executive leadership remained firmly committed to the company’s strategic direction.

“BP continues to build a strong operational performance while maintaining rigorous financial discipline aimed at enhancing shareholder value and returns,” he said.

The abrupt dismissal comes at a sensitive moment for BP as the company accelerates its renewed focus on oil and gas production while scaling back elements of its renewable energy ambitions.

Manifold, the former chief executive of Irish building materials group CRH, had served as BP chairman for only a few months after assuming the role in October. His appointment had already faced an unusually strong shareholder backlash during the company’s annual general meeting last month.

Only 81.8% of shareholders voted in favor of his election — well below the near-unanimous support typically granted to board appointments. Governance analysts noted that even a 5% protest vote is often viewed as significant in major listed companies.

The latest turmoil follows growing investor pressure on BP’s leadership after last year’s historic 24% vote against outgoing chairman Helge Lund.

The leadership crisis also coincides with a broader executive transition inside the energy group. Meg O’Neill, the former chief executive of Woodside Energy, assumed the role of BP chief executive on April 1, succeeding Murray Auchincloss, who had held the position for less than two years.

Meanwhile, CNBC reported that Britain’s Serious Fraud Office and Metropolitan Police had been contacted regarding the matter, though no official responses had yet been issued.