Oil giant BP today confirmed that interim CEO Murray Auchincloss would become its permanent chief executive following the shock departure of his disgraced predecessor Bernard Looney.
A BP employee for more than 25 years, Auchincloss became interim CEO in September after Bernard Looney stepped down amid allegations that he was dishonest to the board over past relationships with employees. Looney forfeited more than £30 million in pay as a result.
Before that, Murray had been BP’s chief financial officer since July 2020, at which time he also joined BP’s board. He had previously served as CFO, deputy CFO and head of business development for bp’sâ¯Upstreamâ¯segment. From 2010-2013 Murray was head of BP’s group chief executive’s office, working directly with Bob Dudley.
The 53-year-old, who was selected after a “robust and competitive search process,” will receive a base salary of £1.45 million as well as a bonus and a cash allowance in lieu of a pension. The move adds to a long tradition at the firm of appointing insiders to the CEO role rather than looking elsewhere – an approach that has had mixed results in the past.
City reaction to Auchincloss’s appointment was broadly positive. Bernstein analyst Oswalt Clint said the new CEO is “well known and respected within the market and most importantly was one of the key architects of BP’s current strategy,” while RBC analyst Biraj Borkhataria said the appointment “represents the best possible outcome for BP shareholders in the short term.” But BP’s shares fell by around 1.3% after markets opened.
Derren Nathan, head of equity research at Hargreaves Lansdown, said; “Mr Auchincloss certainly has a job to do to restore investor confidence, and close the valuation gap with arch rival Shell, and an even wider gulf with its US peers.
“Continuity of the existing strategy is no bad thing but the shape of returns from the growing focus on energy transition technologies still needs to be proved. In the short-term BP’s strong cash flows remain a key area of focus.”
With his sudden defenestration last year, Bernard Looney became the third out of the last four BP bosses to depart in unexpected circumstances.
John Browne, the fallen “sun king” of the global energy industry, started the trend in 2007. He quit as CEO after it was revealed he had lied to a court about his relationship with another man. His successor Tony Hayward stepped down by “mutual agreement” in 2010 over the way in which he handled the Deepwater Horizon oil rig explosion and subsequent environmental disaster. He had not helped his cause by complaining “I’d like my life back”.
