Oil company BP has removed Albert Manifold as chairman due to significant concerns about his behavior. The multinational’s board unanimously agreed to his immediate departure, citing issues related to governance standards and conduct. Despite surviving a shareholder rebellion at the recent annual general meeting, where 18% opposed his election, concerns about governance led to his removal.

Amanda Blanc, the senior independent director at BP, commended Manifold for his contribution to the company’s transformation but expressed disappointment over unacceptable governance oversight and conduct issues. Ian Tyler has been appointed as interim chairman, and a search is underway for a permanent replacement.

Manifold, who previously served as the chief executive at CRH, took on the role of BP’s chairman just last year. His exit follows the resignation of BP’s CEO Bernard Looney in September 2023, triggered by a review of Looney’s personal relationships with colleagues.

BP’s share price plummeted over 5% upon Manifold’s departure confirmation, causing a £4 billion drop in market value. This decline was exacerbated by broader industry backlash following increased profits in the aftermath of the Iran conflict. BP’s profits more than doubled to nearly £2.4 billion in the first quarter of the year, with a significant surge occurring in a short period after the conflict began.

In a strategic shift back to fossil fuels, BP appointed Meg O’Neill as its fifth CEO in six years. Maurizio Carulli of Quilter Cheviot noted the surprise of Manifold’s departure and highlighted the company’s history of senior personnel changes. Despite the short-term negative impact, Carulli emphasized BP’s operational improvements and the importance of a thorough search for a new chair.

The sudden leadership changes at BP underscore ongoing challenges within the company and the broader oil industry.