Key Takeaways
- The BP board has removed chair Albert Manifold over governance concerns.
- Shares initially fell as much as 6% following the news.
- While the exit ‘raises questions’ over the company’s strategy, it should not undermine BP’s overall strategic direction, analysts say.
BP BP. chair Albert Manifold’s sudden exit ‘raises questions’ over the company’s strategy, analysts say.
Shares in the oil major fell 6% after the board unanimously agreed to remove Manifold over “unacceptable” governance and conduct concerns.
Senior independent director Amanda Blanc said the board had been “surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable.” However, the board did not say what the specific issues were.
At BP’s recent AGM, 18% of shareholders voted against Manifold’s re-election after the board blocked a climate resolution from an activist shareholder group.
“At this point it’s fair to say BP has the most volatile boardroom of the oil supermajors,” says Lindsey Stewart, director of institutional insights at Morningstar. “The company’s decision to exclude a shareholder proposal that appears to have ticked all the boxes to be voted by shareholders needlessly antagonized a wide swath of investors and again raised questions about governance and oversight at the company.”
Key Morningstar Metrics for BP Stock
- Morningstar Rating: ★★★
- Economic Moat: None
- Fair Value Estimate: GBX 530.00
- Morningstar Uncertainty Rating: High
Will Manifold’s Exit Undermine BP’s Reset?
The removal of Manifold is the latest in a string of leadership exits at BP, with the oil major now searching for its third chairman in as many years.
Manifold had been credited with the push to simplify the company and accelerate the turnaround initiated last year, according to Henry Tarr, co-head of energy and environment research at Berenberg.
“His sudden removal will raise questions on the strategy of the company and the reasons for the ongoing churn of executives and board members,” Tarr adds.
Manifold became chairman of BP in October 2025 and was tasked with overseeing the oil major’s strategic pivot which has seen investments in renewable energy scaled back amid a renewed focus on fossil fuel extraction.
During Manifold’s tenure, Murray Auchincloss was replaced by current CEO Meg O’Neill, who took up the role in April to accelerate the change in strategy.
However, Maurizio Carulli, global energy analyst at Quilter Cheviot, does not believe Manifold’s departure will undermine the company’s reset.
“Whilst the news is obviously a short-term negative, it is important to remember that BP has made significant operational improvements and strategic refocusing over the past year, and this is the result of the successful efforts of the entire organization and its management, not just of one person,” according to Carulli.
“Furthermore, Albert Manifold had been chair for only eight months, so apart from being part of the board’s decision to appoint new CEO Meg O’Neill, his impact was necessarily limited by the short period of time being in the role,” he says. “It will now be important that the board of BP and its senior independent director, Amanda Blanc, implement a very thorough search for the new chair, focusing particularly on both professional skills and personal characteristics.”
Interim chair Ian Tyler said the leadership team retains “deep conviction” in the company’s strategic direction. Despite the share price decline on May 26, BP remains up 20% for the year to date. The pivot back towards fossil fuels has seen the firm capitalize on surging oil and gas prices amid the Iran war disruption, posting underlying profits of £2.4 billion for the first quarter of 2026.
“With a resurgent share price so far this year, BP should be taking credit for the rewards of its strategic reset,” Morningstar’s Stewart adds.
“Instead, the company is on its third CEO and now its third chairman in under three years. It’s clear that getting a grip on corporate governance and strategy at the company must be a priority of the interim chair and his eventual successor.”
Fair Value Maintained Despite Disarray
Morningstar analysts have retained the £5.30 fair value estimate for BP following Manifold’s exit, leaving its shares fully valued.
“Shares likely fell due to the vagueness of the announcement and broader concerns about BP’s ability to execute,” says Morningstar director of equity research Allen Good.
“It also does little to burnish the company’s reputation for being in disarray, given that it has now rotated through three CEOs and three chairs in only a few years. It also raises further questions about the board’s oversight and ability.”
That said, Good expects chief executive O’Neill to keep pushing BP’s turnaround in the right direction.
“She only took the helm in April and has yet to announce any meaningful changes beyond a reversion to the historical upstream-downstream organization,” he adds.
“We expect her to keep on with what’s worked—cost reductions, capital discipline, and a focus on oil and gas."
