BP chair ousted amid governance crisis after probe findings

The board of BP has removed Chairman Albert Manifold, 62, after an internal probe uncovered what directors describe as "serious breaches" of corporate governance standards. The findings, delivered to the full board on Friday evening, allege Manifold failed to uphold oversight responsibilities tied to conduct policies at BP’s highest levels. An emergency vote was held just hours after the review’s completion, with only one dissenting director.

The decision marks a rare forced exit for a FTSE 100 chairman and signals a potential shift in BP’s approach to ethical compliance under new CEO Murray Auchincloss, who took over in 2023. Insiders say the review was prompted by whistleblower disclosures in late 2023 regarding alleged conflicts of interest involving board members and third-party contractors in BP’s North Sea operations.

BP’s statement released Saturday morning did not specify whether Manifold received any severance, but confirmed his departure is effective immediately. Manifold, a former CRH chief executive, had chaired BP’s board since 2021 and previously led the company’s audit committee. His removal coincides with mounting scrutiny over BP’s role in the energy transition and its continued investment in fossil fuel projects amid record global temperatures.

Sources within BP’s governance team say the review, led by external counsel, examined over 2,500 documents and interviewed 47 current and former employees. The probe focused on whether Manifold adequately addressed warnings about financial irregularities in a £850 million contract awarded to a consortium led by Wood Group in 2022 for decommissioning work in the UK Continental Shelf.

BP’s new chairman, expected to be announced within two weeks, will face immediate pressure to restore confidence among investors and regulators. The company has pledged to publish a full report on the governance review by the end of June, though it has not indicated whether any legal action against individuals will follow. Regulatory filings show BP’s board is already preparing for potential shareholder resolutions on governance at its annual meeting in September.

Industry analysts note that Manifold’s exit is the most dramatic boardroom shake-up in BP’s recent history and reflects broader challenges facing traditional energy companies as they navigate ESG demands from investors. Shareholder activist group Follow This has already called for a vote against the re-election of at least three board members at the next AGM, citing "systemic failures in oversight."

1. June 30 deadline — BP to release full governance review findings
2. September AGM — Shareholders to vote on board re-elections amid rising dissent
3. Q4 2025 — Expected announcement of new BP chairman

The UK’s Financial Conduct Authority has not commented publicly but has flagged governance as a key area of focus in its 2025 supervisory priorities. Meanwhile, BP shares dipped 1.8% in early trading Monday, erasing gains from last week’s modest rally tied to projections of higher oil output in Angola.