BP Plc's high-stakes reboot has descended into an ugly boardroom drama, with the sudden firing of non-executive chairman Albert Manifold followed by a public rebuttal. This rare example of boardroom acrimony spilling into the open has transfixed the London business community.
Background and Initial Moves
When Albert Manifold was hired as chairman of BP Plc, he joked to friends that the company needed a 'gurrier' — Irish slang for a savvy and scrappy streetfighter — to help turn its fortunes around. He took the task to heart, immediately becoming demanding, delving into the nitty gritty across the company and putting staff on the spot, at times unpleasantly so. He clashed with chief executive Murray Auchincloss and was involved in removing him. However, the blunt Dubliner also won the backing of one of BP's biggest investors and most influential critics: activist Elliott Investment Management.
The Firing
Just months later, the former building-materials boss is out. The company abruptly issued a statement referring to 'governance standards, oversight and conduct' but left investors and analysts guessing about what exactly he had done. People close to BP have offered a range of reasons for the exit and broader tensions, alleging that it received multiple complaints against him of bullying and aggressive behavior, that he used a personal device for sensitive company information, and that he sought to control the relationship with Elliott while alienating other investors.
Manifold's Rebuttal
Manifold quickly hit back, issuing a 773-word statement attacking what he said were 'lies' being spread about him, defending his efforts to cut costs, and making implied jabs about the spending habits of his fellow directors. A representative provided further detailed comments, reiterating that he was never told about any complaints about his conduct before he was removed, saying he encouraged and facilitated meetings with Elliott for colleagues, and that the use of an external email address was a company-sanctioned workaround to technology malfunctions at BP.
Impact on BP
The sudden firing of a non-executive chairman, followed by Manifold's very public and spirited rebuttal, has transfixed the London business community as a rare example of ugly boardroom acrimony spilling out into the open at one of Britain's most-storied companies. 'It's hard to think of a situation like this; precedents are quite scarce,' said Larry Cunningham, the head of the Center for Corporate Governance at the University of Delaware. 'I don't think they owe us a detailed explanation, but it does leave us all to put the dots together.'
As the details trickle out, the turmoil risks becoming a badly-timed distraction for BP's leadership just as the company was finally finding its feet after a long period of underperformance. Faced with pressure from one of the world's most aggressive and successful activist investors, it has been cutting costs, selling assets to reduce a huge debt pile and refocusing the business back on oil and gas after a failed pivot to renewables.
Boardroom Questions
The psychodrama raises questions about the functioning of the board, which has presided over a revolving door of leaders and received a black eye from shareholders just last month when investors rejected two resolutions at its AGM and penalized Manifold in a protest vote. The result came as a shock to the company, people familiar with the matter said.
