BP: Removal of Chair Creating Turmoil, but Strategic Direction Unlikely to Change

Key Morningstar Metrics for BP

• Fair Value Estimate
  : GBX 530
• Morningstar Rating
  : ★★★
• Morningstar Economic Moat Rating
  : None
• Morningstar Uncertainty Rating
  : High

BP BP. announced the removal of Albert Manifold as chair and director, effective immediately, due to “serious concerns” related to important governance standards, oversight, and conduct. Shares fell 4% on the news.

Why it matters: Manifold was only installed as chair in October 2025, but still had a meaningful impact in his short time, including pushing the firm to go faster and further in its turnaround and replacing the CEO. Although the press release was vague, he reportedly overstepped his role, withheld information from the board, acted aggressively toward colleagues, and clashed with the new CEO Meg O’Neill. He disputed the characterization.

The bottom line: Our GBX 530/USD 41.60 fair value estimates and no moat rating are unchanged, leaving shares fully valued in our view. Shares likely fell due to the vagueness of the announcement and broader concerns about BP’s ability to execute. 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, we expect 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.
• We expect her to keep on with what’s worked—cost reductions, capital discipline, and a focus on oil and gas.