(Bloomberg) — Former BP Plc Chairman Albert Manifold says he was fired without warning or explanation and will challenge the company\u2019s version of events, deepening the turmoil around the UK oil major\u2019s latest leadership change.<\/p>\n
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BP ousted Manifold on Tuesday after eight months on the job, citing serious concerns related to \u201cgovernance standards, oversight and conduct.\u201d The company didn\u2019t provide further details in its statement, but people close to BP who requested anonymity said there had been complaints about aggressive behavior by Manifold toward employees, as well as of mishandling sensitive information and seeking to bypass the board.<\/p>\n
\u201cI was removed without warning and without explanation,\u201d Manifold said in an emailed statement. \u201cI dispute entirely the characterization of my conduct and I will not allow a false narrative to go unchallenged.\u201d<\/p>\n
Manifold\u2019s dismissal is the latest in a prolonged period of leadership upheaval at BP, which has included three chief executive officers in as many years, and raises fresh questions about the company\u2019s internal processes at a time when it\u2019s seeking to turn around years of poor performance. Manifold was seen as accelerating BP\u2019s strategic reboot in response to investor pressure.<\/p>\n
BP\u2019s shares dropped 4% on Tuesday and a further 2.7% on Wednesday.<\/p>\n
The decision consolidates the authority of new Chief Executive Officer Meg O\u2019Neill, who Manifold hired last year. She has already begun to reshape the company \u2014 announcing a restructuring within a couple of weeks of starting in the role last month.<\/p>\n
\u201cWe had welcomed what looked to be a turnaround under Mr. Manifold, but we think serious questions do need to be asked about the wider board\u2019s decision-making process,\u201d Barclays Plc analyst Lydia Rainforth said in a note.<\/p>\n
The oil giant had underperformed rivals for years after former CEO Bernard Looney, who was removed after failing to disclose personal relationships with colleagues to the board, pivoted the company toward renewable energy.<\/p>\n
\u201cDuring my time as chairman I worked to drive genuine change at BP \u2014 cutting costs, challenging excess, and holding the organization to higher standards,\u201d Manifold wrote. \u201cThe board\u2019s statement this morning acknowledged the focus and pace I brought.\u201d<\/p>\n
He hired law firm Mishcon de Reya, according to a person familiar with the matter.<\/p>\n
Welcomed Changes<\/p>\n
Prior to the news of his departure, investors had welcomed many of the changes Manifold brought, including the swift appointment of O\u2019Neill, Big Oil\u2019s first female CEO.<\/p>\n
On Tuesday, BP signaled it will stick with the strategy championed by Manifold since his October appointment. The Irishman, who previously ran building-materials giant CRH Plc, pushed BP to invest in its core oil and gas business, improve operational performance and sell assets.<\/p>\n
Activist investor Elliott Investment Management had advocated for several such changes, having amassed a stake in BP starting more than a year ago. Elliott declined to comment on Manifold\u2019s ouster.<\/p>\n
The board has \u201cdeep conviction in the strategic direction we have laid out, and the company is moving at pace to deliver it,\u201d Ian Tyler, who replaced Manifold as interim chairman, said in a statement.<\/p>\n
Manifold\u2019s measures showed signs of working. He scored a coup by recruiting former Exxon Mobil Corp. executive O\u2019Neill to join as CEO from Woodside Energy Group Ltd.<\/p>\n
Boosted by higher crude prices and high trading profits, BP is the second-best performing oil supermajor since the war with Iran began in February. Now, analysts fear uncertainty will once again dog returns.<\/p>\n
\u201cWe had believed Manifold could be a driving force behind any updates, including an acceleration of investing in core oil and gas assets and further simplifying the business,\u201d Jason Gabelman, a New York-based analyst at TD Cowen wrote in a note. \u201cContinued leadership change could bring into question pace of change at a minimum.\u201d<\/p>\n
(Updates with Manifold\u2019s legal representation in the tenth paragraph.)<\/p>\n
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