BP is facing renewed scrutiny over its corporate governance following the abrupt dismissal of its chairman. Albert Manifold was removed from his position due to what the company described as “serious concerns related to important governance standards, oversight and conduct.” Sources close to BP cited a “volcanic” temper, “bullying,” and “verbal abuse” as contributing factors to his ousting.
However, Manifold has vehemently rejected these claims, issuing a 769-word statement on Thursday where he accused BP staff of “lies” and hiding behind “anonymity.” He contended that his dismissal was a direct consequence of his efforts to address what he viewed as “unnecessary expenditure” and “excessive” spending within the oil giant:
“At no point in my tenure as chairman of BP has anyone raised with me any issue about my conduct or my relationship with my colleagues. What I do not accept is that lies can be told about me, nor that anyone should be allowed to hide behind anonymity when commenting on my time at BP.”
Manifold claims he advocated for a crackdown on discretionary spending by non-executive directors, citing examples such as corporate tickets for sporting events, including Wimbledon. He highlighted his personal commitment to cost-consciousness, stating: “I had no interest in having a dedicated chauffeur-driven limousine at my beck and call on the occasions that I was in London. I, like most people, walked, took taxis, trains, etc. I had no interest in taking private aviation nor in availing myself of corporate tickets for sports events. I made my own coffee and bought my lunch in the local café. I sat in a small office, eschewing the grand corner-office privilege of previous chairmen.”
A source close to Manifold suggested that some board members did not share his “commitment to cost cutting and budgeting.” Meanwhile, a source close to BP indicated that corporate hospitality at events like Wimbledon is a customary practice for entertaining business clients. BP has previously provided Wimbledon tickets to politicians, with donations exceeding £4,200 to two MPs and a government minister in 2023.
BP’s share price has experienced a 5.6 per cent slump since Manifold’s departure was announced on Tuesday. This latest leadership upheaval follows the resignation of former chief executive Bernard Looney in September 2023, who forfeited approximately £32.4 million in pay for failing to fully disclose workplace relationships.
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The company is currently engaged in a significant cost-reduction programme, aiming to cut between $4 billion and $5 billion in structural costs by the end of 2027, and has announced plans to eliminate 6,200 corporate positions and 4,400 contractor roles by the end of 2025.
Manifold emphasised the importance of leadership by example during such times, commenting: “In promoting a culture of cost consciousness and driving necessary cost reductions, whilst at the same time laying off thousands of people, setting the right example and leadership is required.”
He is understood to be exploring legal action against BP regarding potential severance payment withholding.
