London: 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.
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.
Also Read: AirAsia launches first codeshare with Turkey's Pegasus Airlines
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.
The company's share price dropped by 0.6% by 0828 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.
Tyler, who also chairs building materials firm Grafton Group and is senior independent director for mining company Anglo American, joined BP's board last year and had replaced Manifold on an interim basis in May.
Also Read: US debt hits $40 trillion. Here’s how Washington has tackled funding crises before
"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.
BP'S 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.
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.
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.
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.
