BP chairman overcomes shareholder backlash to win first election

[LONDON] BP chairman Albert Manifold won his first election, overcoming opposition from shareholders who questioned the board’s transparency after a climate resolution was not allowed to be voted. 

Slightly more than 81.8 per cent of shareholders voted in favour of Manifold, based on preliminary figures shown at the company’s annual general meeting on Thursday (Apr 23).

That was better than the roughly 76 per cent his outgoing predecessor Helge Lund received last year, amid a symbolic protest vote as he was set to step down.

Investors including No 8 shareholder Legal & General Group (L&G) said they would oppose Manifold’s election, while proxy adviser Glass Lewis recommended investors do the same, after the exclusion of a climate proposal filed by activist group Follow This.

L&G was also among the investors who had opposed Lund’s re-election, in protest over the effect BP’s renewed emphasis on fossil fuels would have on climate commitments.

The general meeting was the first for both Manifold and new CEO Meg O’Neill, who took the reins of the UK energy giant in April with a mission to streamline the business and focus on oil and gas production.

Manifold, a former construction materials executive, assumed control of the board in October warning of tough decisions, after calls for change from activist investor Elliott Investment Management.

Norway’s US$2.2 trillion sovereign wealth fund was among investors that supported Manifold’s election.

BP has pledged more investment into oil and gas, something Elliott and other investors had been urging, after a botched 2020 pivot towards low-carbon ventures under Lund and then-CEO Bernard Looney. 

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That has helped the shares recover after years of underperformance. This year, it is second only to TotalEnergies among the top five oil majors, with a gain of more than 30 per cent in US dollar terms. BLOOMBERG