BP Names Ian Tyler as New Chair After Board Reshuffle and Governance Changes
BP Board Changes and Strategic Direction
By Shadia Nasralla and Stephanie Kelly
Appointment of Ian Tyler as Chair
LONDON, Sept 2 (Reuters) - BP has appointed Ian Tyler, former CEO of building group Balfour Beatty, as its permanent chair, it said on Wednesday, after it fired Albert Manifold in May, citing governance and conduct concerns.
Departure of Amanda Blanc
Amanda Blanc, BP's senior independent director, who oversaw Manifold's and Tyler's appointments, will not seek re-election at next year's annual general meeting and will step down once a successor for her has been found, BP said.
Background on Manifold's Dismissal
Manifold's surprise dismissal, less than eight months after he took office to help oversee efforts to refocus BP on its oil and gas business, followed years of management churn at BP.
Market Reaction
The company's share price dropped by 0.6% by 1303 GMT, versus a 0.2% fall for the wider European energy sector. Year-to-date, BP shares have gained 25%, in line with gains for shares in Shell. The U.S.-Israeli war on Iran has boosted profits for oil majors, especially for those with large trading desks such as the two British groups.
Ian Tyler's Interim Role and Board Experience
TYLER REPLACED MANIFOLD ON INTERIM BASIS IN MAY
Tyler, who also chairs building materials firm Grafton Group, joined BP's board last year and had replaced Manifold on an interim basis in May.
“I will lead the board’s evolution, ensuring we have the depth, experience and capabilities needed to support the company's strategic priorities and long-term value creation," Tyler said in a statement.
He also said he would establish "regular and transparent engagement" with shareholders.
"Given the significance of the role, Ian will review his existing board commitments to ensure that he can devote the appropriate time and attention to the company," BP said.
Other Board Roles and Industry Experience
Tyler has been senior independent director for Anglo American since 2022. During that time, the mining company simplified its portfolio and shifted its strategic focus after fending off a takeover bid by BHP.
It also came under pressure from activist hedge fund Elliott Investment Management, which built up a major stake in Anglo American.
Elliott disclosed last year that it also had a stake of over 5% in BP and has given no public update since then on how much of the company it owns.
BP's Strategic Priorities and Future Outlook
Five Strategic Priorities
BP CEO Meg O'Neill, who took over the role in April and is the fifth CEO since 2020, outlined last month five priorities for BP: further strengthening the balance sheet, simplifying the portfolio, tightening investment discipline, improving operational performance, and creating structures that enable faster decision-making and greater accountability.
Profitability and Debt Reduction Targets
The group aims to increase profitability and analysts expect BP to hit its net debt reduction target of $14 billion to $18 billion ahead of its end-2027 target.
Controversy Surrounding Manifold's Departure
Manifold has said he disputed BP's version of events, which did not go into detail about the company's conduct and governance concerns, and that he would not let this "false narrative" go unchallenged.
Allegations and Legal Representation
Four sources with knowledge of the matter said at the time of Manifold's dismissal in May he had acted aggressively with different colleagues across the company, citing that as one reason for his firing.
Manifold hired law firm Mishcon de Reya to represent him after his ouster, a source familiar with the situation told Reuters in May. Representatives for Manifold declined to comment on Wednesday.
Reporting Credits
(Reporting by Shadia Nasralla and Stephanie Kelly in London, additional reporting by Clara Denina and Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee, Sharon Singleton, Louise Heavens and Barbara Lewis)
