In a dramatic leadership shakeup, BP PLC ousted its chief executive, Canadian Murray Auchincloss, on Wednesday, December 19, 2024, replacing him with external hire Meg O’Neill. The move marks the first time in the energy giant's 115-year history that it has appointed an outsider to the top job.
A Collision of Visions at the Top
The sudden departure was the culmination of weeks of escalating tension between Auchincloss and the company's newly installed chair, Albert Manifold. According to sources familiar with the matter, the two men were repeatedly at loggerheads over whether to change BP's corporate strategy for the third time in as many years.
Manifold, an industry outsider who took the helm of the board just two months ago after leading Irish building materials group CRH, pushed for a radical reshaping of BP. His vision was for a "simpler, leaner, more profitable" company, a plan that saw Auchincloss as a significant obstacle. "It was night and day between Murray and Albert," one person who knows both men said.
Personality and Strategy in Conflict
The dispute was both strategic and deeply personal. Auchincloss, an introverted Canadian who served as BP's finance chief before being elevated to CEO after his predecessor Bernard Looney's dismissal, found himself mismatched with Manifold's gregarious and hands-on style.
Described by one insider as a "hard-edged, sharp-elbowed" leader who "likes to roll his sleeves up," Manifold was determined to drive change. This resolve was noted by major BP shareholder Aberdeen, whose senior investment director, Iain Pyle, stated that after a recent meeting, it was clear Manifold "would act to drive change through the business" and refocus BP on its core strength: upstream oil and gas production.
Meanwhile, Auchincloss had reportedly realized earlier in the year that he did not wish to remain as BP's chief executive long-term. However, the timing of his exit—forced out just days before Christmas—stunned many within the company, even though rumours of a leadership change had been circulating.
Investor Confidence Eroded Over Time
When Auchincloss, a 55-year-old company lifer with over 25 years at BP, first took the role, he was seen by investors as a steadying force following Looney's scandal-driven departure. However, that confidence gradually waned.
Critics felt he was too slow to dismantle his predecessor's ambitious, but ultimately costly, plans to transform BP into a green energy leader. He also retained much of Looney's old management team. Furthermore, his public demeanour began to irritate some major shareholders; when asked in February if he had any regrets after a turbulent first year, he replied, "Nothing comes top of mind," a comment perceived by some as showing a lack of contrition for the company's struggles.
The abrupt CEO change signals a decisive turn under Chair Albert Manifold's activist leadership, setting the stage for a potentially major strategic pivot at one of the world's largest energy companies as it enters 2025.
