BP’s boardroom crisis is growing more complicated. On Wednesday, American depositary receipts dropped 1.4% in premarket trading, adding to a 3.9% fall the day before. The decline followed former chairman Albert Manifold’s public challenge to how the company described his removal. This dispute raises questions about BP’s governance and comes at a difficult time, as the company tries to reassure investors that its new strategy is working.
Manifold said he was removed suddenly and without explanation, disputing the board’s version of events. He described his time at BP as focused on cutting costs, challenging waste, and raising standards. He also said he would not let what he called a false story go unanswered. BP did not respond to requests for comment.
The Wall Street Journal reported that BP’s board was told Manifold had been verbally abusive and bullied employees, and that he mishandled company information. The board voted unanimously on Tuesday to remove him right away.
The timing is especially tough for BP. Under Manifold, the company seemed to be finding its footing, helped by higher oil prices due to the Iran war and better profits from unpredictable trading. He also led the hiring of new CEO Meg O’Neill in April, a move investors welcomed. Now, his sudden removal and public response could overshadow these gains and bring back concerns about BP’s culture and leadership.
A long and public fight between the former chairman and BP’s board is the last thing the company needs as it tries to win back investor trust in its long-term plans.
