A chairman who got the job in October isn't normally out by May, but Albert Manifold is. BP fired him Tuesday with no warning, citing governance and conduct issues it called "unacceptable."
Shares dropped as much as 9% in London before paring to a 4% loss. That's not a normal week at an oil supermajor. For BP, it's starting to look like a normal year.
BP said the move followed "serious concerns" about governance standards, oversight, and conduct, but it didn't say more. Amanda Blanc, BP's senior independent director, called the decision necessary.
She said the board was "surprised and disappointed" to learn of issues it deemed "unacceptable," and took "decisive action." Ian Tyler is taking over as interim chair, and a search for a permanent chair is now underway.
Tyler said BP's leadership has "deep conviction" in the company's strategic direction and pledged a continued focus on "operational performance" and "financial discipline."
CNBC reached out to the U.K.'s Serious Fraud Office and is waiting for a reply. The Metropolitan Police Service declined to comment.
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Manifold only joined as chair in October. At BP's annual meeting last month, he received an 81.8% shareholder vote - far below the close-to-100% that's typical for board elections.
Activist investors had already flagged the result as a warning shot. The exit also comes weeks into a new CEO, with former Woodside Energy chief Meg O'Neill taking over as CEO on April 1 after Murray Auchincloss spent less than two years in the role.
The company is now pivoting back toward oil and gas and away from a renewables push that fell out of favor with shareholders.
Lindsey Stewart, director of institutional investor content at Morningstar, said BP now has "the most volatile boardroom" of the oil supermajors. "The company is on its third CEO and now its third chairman in under three years," he said.
Maurizio Carulli, global energy analyst at Quilter Cheviot, said the news is a short-term negative but pointed to BP's operational improvements over the past year as the bigger story.
Two things from here. First, whether BP explains what Manifold actually did - the wording is vague enough that investors are filling in the blanks themselves, and that's never good for a stock.
Second, who lands the permanent chair. After three chairs and three CEOs in under three years, the next pick is the one that has to actually stick.
BP's strategy is finally moving. Its board still isn't.
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