Pressure on Bp Board Rises as Lapff Joins Shareholder Adviser Chorus Recommending Dissenting Votes

Pressure on BP climbs as UK pension fund group joins dissenting vote chorus

UK Pension Fund Forum Adds to BP Boardroom Pressure

By Shadia Nasralla

LONDON, April 9 (Reuters) - BP shareholders should vote against its chair Albert Manifold and other board-supported resolutions, a UK pension fund body said on Thursday.

Mounting Shareholder Dissent

The recommendation by the Local Authority Pension Fund Forum has increased pressure on the oil major after influential proxy advisers Glass Lewis and ISS, and top-10 BP shareholder LGIM also supported votes against BP's wishes.

Advisers such as Glass Lewis and ISS lead huge portions of shareholder votes and rarely push for votes against a firm's board.

LAPFF's Influence and Concerns

LAPFF, whose members taken together would be equivalent to a top-5 BP owner according to LSEG data, said its recommendation stemmed from concerns about "transparency and robust governance".

Controversial Resolutions and AGM Actions

BP has excluded a resolution filed by climate activist group Follow This from the April 23 annual general meeting, asked for permission to hold online-only annual general meetings and to retire two previous resolutions requiring company-specific climate reporting.

The LAPFF, which says it represents funds with assets worth over 425 billion pounds ($569 billion) and around 1.34% of BP's shares, opposes all these moves.

Climate Disclosure Demands

The Follow This resolution called on BP to disclose how its strategy would perform under scenarios of declining demand for oil and gas. BP has said the resolution was invalid and would be ineffective if it were to pass at its AGM.

BP's Response to Shareholder Concerns

Referring to its plan to retire the two climate resolutions, a BP spokesperson said the oil major has had extensive engagement with its largest investors and is focused on building a more valuable company. "That's why we are making these recommendations, to provide transparent, standardised disclosures that support clear comparisons across companies," the spokesperson said.

Shareholders had approved the two resolutions with nearly unanimous backing in 2025 and 2019. BP would need 75% support to retire them.

Support for Additional Climate Resolution

LAPFF also said it would go against BP's recommendation and support a shareholder resolution filed by climate group ACCR asking the oil major to publish more information showing that shifting spending from low-carbon projects to oil and gas will strengthen shareholder value.

Leadership Changes at BP

The dissent comes right on the heels of a management change at BP. New CEO Meg O'Neill, the fourth since 2023 and BP's first external hire for the role in more than a century, began her stint in early April, joining new chairman Albert Manifold, who took up the role in October.

($1 = 0.7467 pounds)

(Reporting by Shadia Nasralla; Editing by Tomasz Janowski and Janane Venkatraman)