BP shares fall after chairman Albert Manifold removed over governance concerns

British energy major BP said on Tuesday that its board had unanimously decided to remove chairman Albert Manifold with immediate effect, citing governance oversight and conduct-related concerns.The company said the decision followed issues that the board considered “unacceptable”, despite acknowledging Manifold’s contribution to accelerating BP’s strategic transformation efforts.

“Albert has helped bring a welcome focus and pace to bp’s transformation,” Amanda Blanc, senior independent director at BP, said in a statement.
“However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action,” she added.The announcement triggered a sharp reaction in the market, with London-listed shares of BP falling as much as 9% during trading before recovering some losses. The stock was last trading more than 5.4% lower.

BP said Ian Tyler has been appointed interim chairman with immediate effect while the company begins the process of selecting a permanent successor.

“The Board and leadership team have deep conviction in the strategic direction we have laid out, and the company is moving at pace to deliver it,” Tyler said.

“bp is building a track record of strong underlying operational performance and a tight focus on financial discipline — all in the pursuit of growing shareholder value and returns,” he added.