BP CEO Meg O’Neill attends a UK-US trade event with King Charles III at Bar SixtyFive in Rockefeller Center during a state visit on April 29, 2026 in New York City.
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BP is on its third CEO and third chairman in less than three years, prompting investors to scrutinize its board structure and oversight as the oil giant works to turn around and adjust to the shock of the acquisition.
A few weeks after CEO Meg O’Neill started in April, the chairman, Albert Manifold, was abruptly fired in late May. The board said this was due to “significant concerns” related to governance standards, oversight and ethics.
Manifold said he was fired “without warning and without explanation,” adding that he “absolutely disagrees” with his behavior.
One of the oil supermajor’s top active investors told CNBC that others may be at risk of missing the big picture, while an activist shareholder said the company needs to urgently address the reasons for the profit.
‘A turbulent time for leadership transition’
Nick Mazan, head of oil and gas strategy at the activist group ACCR, said BP needed to provide a “clear and honest picture” of the selection process that led to Manifold’s appointment.
“The appointment process seems dysfunctional. No large cap company should have three CEOs and chairs in as many years,” Mazan told CNBC via email.
“There are understandably big questions about whether the board, as currently constituted, is going through a tumultuous period of leadership transition, is up to the task of identifying a new chairman and challenging the CEO with the current strategy of cost increases,” he continued.
William Lin, senior vice president, regions, companies and solutions for BP Plc, attended India Energy Week 2023 in Bengaluru, India, on Monday, Feb. 6, 2023.
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“It is difficult to see how the company can rebuild trust and confidence among investors. Greater participation from shareholders in the board appointment process may be needed.”
When asked for comment, BP referred CNBC to comments from Ian Tyler, the company’s interim chairman, who said on the day of Manifold’s ouster: “The board and the leadership team have deep confidence in the strategic direction we have set, and the company is on pace to deliver it.”
O’Neill wants to simplify the company’s structure by returning to an upstream model, partially pivot away from renewables and back to its core oil and gas business.
The company said on Tuesday that Gordon Birrell will lead its upstream division, which focuses on oil and gas, while Richard Harding will be the interim head of the division that includes refining, terminals, biofuels, and aviation.
Longtime CEO William Lin will leave later this year, the company announced last week.
Brian Kersmanc, portfolio manager at GQG Partners, one of BP’s biggest active investors, said investors were “missing the forest for the trees” with the staff departure.
“I think BP’s overall strategy and the progress they’ve made has a bigger impact than the employee shakeup,” Kersmanc told CNBC in an email.
The Iran war has caused the largest oil supply disruption in history, putting enormous pressure on global energy markets. Kersmanc said the current “constrained oil market” has left the industry with no “easy fix” to restore supply levels and “no desire or ability” for oil companies to increase supply.
Kersmanc added that BP boasts “very strong and diversified assets,” while the market appears to value the company as a mid-cap shale producer rather than a global integrated oil company.
“We think that the level of free cash flow that they will be able to generate will increase, especially if we see electricity prices increase for a long time,” he added.
What does BP’s leadership change mean for investors?
Maurizio Carulli, global energy analyst at wealth manager Quilter Cheviot, said Manifold’s removal and Lin’s exit are unrelated, and the impact is likely to be limited.
“While the news may be viewed 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,” said Carulli.
“These changes reflect the efforts of the wider organization and its management team, rather than reliance on any one individual.”
John Browne, who was BP’s CEO for 13 years until 2007, told CNBC’s “Executive Decisions” that not all of the problems facing big oil are systemic.
He said “a lot of things” have changed in the past 20 years, “not the least of which is the determination of shareholders that the oil and gas industry must return to its roots and use more of its capital.”
BP needs to “settle for the future,” Browne said in a wide-ranging interview with Steve Sedgwick. “It is very clear to me that, unless leadership is an A grade, not a B grade, not an A, an A, or an A plus, and it is stable. You’re not going to make a good return,” Browne said.
When asked if BP’s new CEO was an A-grade leader, Browne said it was “too early to tell.”
“I know Megan well, and I helped her for a while at Woodside, and I wish her the best of luck. But in the end, you never know [know]. He has good promises, but you can’t talk about someone until everything is over,” he said.
When asked what the labor changes mean for investors, Quilter Cheviot’s Carulli said multiple levels of management in such large organizations mean that “the departure of one person, no matter how senior, should not affect the business as a whole.”
“It is important that the BP board conducts a thorough and well-considered process to appoint a new chairman, including considering any lessons learned from the circumstances surrounding Albert Manifold’s departure,” he added.
