BP CEO Meg O’Neill attends an Anglo-American trade event with King Charles III at Bar Sixty-Five in Rockefeller Center during a state visit in New York City, April 29, 2026.
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blood pressure The company has had its third CEO and third chairman in less than three years, and investors are taking a closer look at board structure and oversight as the oil major tries to rebuild and adapt to supply shocks.
Chairman Albert Manifold was suddenly fired in late May, weeks after Meg O’Neill took over as CEO in April. The board said this was due to “serious concerns” about governance standards, oversight and conduct.
Manifold said he was fired “without warning or explanation,” adding that he fully disputes “the characterization” of his actions.
One of the oil giant’s most active investors told CNBC that some may be at risk of missing the big picture, while one activist shareholder said the company urgently needs to address the reason for the turnover.
“Chaotic era of leadership change”
Nick Mazan, head of oil and gas strategy at activist shareholder ACCR, said BP needed to show “clear and honest reflection” on the selection process that led to Mr Manifold’s appointment.
“The nomination process appears to be dysfunctional. I don’t think any large company would have had three CEOs and three chairs in as many years,” Mazan told CNBC in an email.
He continued: “There are, understandably, significant questions about whether the board as currently constituted, which has presided over a chaotic period of leadership change, is up to the task of identifying a new chair and challenging the CEO on the current strategy of increasing upstream spending.”
William Lin, Executive Vice President, Regions, Corporate and Solutions, BP Plc, attends India Energy Week 2023 on Monday, February 6, 2023 in Bangalore, India.
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“It is difficult to see how the company can rebuild trust with investors. A more active role by shareholders in the board nomination process may be required.”
Asked for comment, BP referred CNBC to comments from Interim Chairman Ian Tyler on the day of Manifold’s dismissal, saying, “The board and management team have deep conviction in the strategic direction we have set, and the company is moving rapidly to deliver on it.”
O’Neill is simplifying the company’s structure by returning to an upstream and downstream model as part of a pivot away from renewable energy and back to its core business of oil and gas.
The company announced Tuesday that Gordon Birrell will become head of its upstream division, which focuses on oil and gas, and Richard Harding will become interim head of its downstream division, which includes refining, terminals, biofuels and aviation.
The company announced last week that longtime executive William Lin will retire later this year.
Brian Kersman, a portfolio manager at GQG Partners, one of BP’s largest active investors, said investors are “missing the forest for the trees” when it comes to personnel changes.
“I think BP’s overall strategic direction and the progress it has already made is more impactful than the personnel shakeup,” Kersman told CNBC in an email.
The Iran war has caused the largest oil supply disruption in history and is putting severe pressure on global energy markets. Kersman said that with the current “supply-constrained energy market,” the industry has no “easy solutions” to restore supply levels, and oil companies have “no desire or ability” to increase supply.
Kaasmank added that while BP boasts “very strong and diversified assets,” the market appears to be valuing it more like a mid-cap shale producer than an integrated global oil major.
“We think the percentage of free cash flow they can generate will increase, especially if energy prices remain high for an extended period of time,” he added.
What does BP’s management change mean for investors?
Maurizio Carulli, global energy analyst at asset management firm Quilter Cheviot, said Manifold’s dismissal and Lin’s departure were unrelated and the impact was likely to be limited.
“While this news may be perceived negatively in the short term, it is important to remember that BP has refocused its strategy and made significant operational improvements over the past year,” Carulli said.
“These changes reflect the efforts of the broader organization and its management team, rather than relying on any particular individual.”
John Brown, who served as BP’s CEO for 13 years until 2007, told CNBC’s “Business Decisions” that not all of the problems facing the oil major are systemic.
He said “a lot” had changed over the past 20 years, including “shareholders’ determination that the oil and gas industry should go back to its roots and put more capital into it.”
In a wide-ranging interview with Steve Sedgwick, Brown said BP needed to “stabilize for the future.” “It’s clear to me that if your leadership is not a B grade, not an A-minus, an A, or an A-plus grade, but consistently an A grade, you’re not going to get good returns,” Brown said.
Asked whether BP’s new CEO was an A-grade leader, Brown said: “It’s too early to tell.”
“I know Megan very well. I helped her at one point when she was at Woodside and I wish her the best. But at the end of the day, you can never (know). She has a great future, but you should never talk about anyone until it’s all over,” he said.
Asked what the changes would mean for investors, Quilter Cheviot’s Carulli said that in such large companies, there are multiple layers of management, so “the departure of one person, no matter how senior, should not have a material impact on the business as a whole.”
“It is important that BP’s board undertakes a thorough and well-considered process to appoint a new chair, including reflecting on the lessons learned from the circumstances surrounding Albert Manifold’s resignation,” he added.
