The abrupt Tuesday morning firing of BP Chairman Albert Manifold by the board certainly raised eyebrows, given his key role in the company's turnaround effort: unwinding years of underperforming green-energy bets and steering the oil major back toward its oil-and-gas business.
The board cited "serious concerns" tied to "important governance standards, oversight, and conduct" as the core reason for Manifold's removal. But the explanation remains vague, leaving Wall Street desks wondering exactly what prompted such a sudden and aggressive move against the chairman.
Bloomberg reporters reached out to Manifold for his perspective on the firing. He said, "I was removed without warning and without explanation."
"I dispute entirely the characterization of my conduct and I will not allow a false narrative to go unchallenged," Manifold continued.
The outlet spoke with people close to BP, who requested anonymity, and said the firing was tied to Manifold's "aggressive behavior" toward employees and mishandling of sensitive information. They also noted that he was seeking to bypass the board.
Manifold told the reporters, "During my time as chairman, I worked to drive genuine change at BP — cutting costs, challenging excess, and holding the organization to higher standards," adding, "The board's statement this morning acknowledged the focus and pace I brought."
The dismissal adds to BP's leadership instability, following years of underperformance and multiple CEO changes.
Also, BP shares in London are nearing the lows set by yesterday's announcement.
Manifold had been a driving force behind an aggressive turnaround, bringing in CEO Meg O'Neill, Big Oil's first female chief executive, while pushing cost cuts, asset sales, and a renewed focus on oil and gas.
Current Board
That strategy had been warmly received by Wall Street analysts after years of frustration with BP's costly move into unprofitable and unreliable green-energy deals.
"We had welcomed what looked to be a turnaround under Mr. Manifold, but we think serious questions do need to be asked about the wider board's decision-making process," Barclays analyst Lydia Rainforth said in a note.
TD Cowen analyst Jason Gabelman noted, "We had believed Manifold could be a driving force behind any updates, including an acceleration of investing in core oil and gas assets and further simplifying the business. Continued leadership change could bring into question pace of change at a minimum."
His removal now raises new questions over whether the company can maintain the turnaround plan.