BP stock falls by more than 4 percent in US and UK markets as governance concerns lead to chairman Albert Manifold’s ousting.

Albert Manifold is out as chairman of British Petroleum (BP), effective immediately after only eight months on the job.

His exit on Tuesday comes amid “serious concerns” that were raised to the oil and gas giant’s board about “important governance standards, oversight and conduct”, the company said in a statement, but did not elaborate on what those concerns entailed.

Manifold’s departure comes amid a wave of leadership changes at the London-based energy giant.

Three years ago, CEO Bernard Looney was fired after he lied about personal relationships with colleagues.

Ian Tyler, a former chief of British construction group Balfour Beatty and who has been on BP’s board since last year, will be interim chair.

With Manifold new in the job, Looney’s successor Murray Auchincloss left abruptly in December, with no clear reason given for his exit. Former Woodside CEO Meg O’Neill was immediately announced as BP’s fifth CEO since 2020 to accelerate the company’s shift in focus back to oil and gas and away from renewable energy, a strategy change announced by Auchincloss early last year.

BP said its board had unanimously decided that Manifold – who has had the backing of activist hedge fund Elliott, which has built up a stake of about 5 percent in BP – should no longer serve as chair and director with immediate effect.

“This follows serious concerns raised to the board related to important governance standards, oversight and conduct,” BP said.

“Albert has helped bring a welcome focus and pace to BP’s transformation. However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action,” said senior independent director Amanda Blanc. Blanc oversaw Manifold’s appointment in October.

A BP spokesperson declined to give further details. The Reuters news agency could not immediately reach Manifold for a comment.

Elliott declined to comment.

Mixed performance

Manifold, who had never held a job in the energy industry before BP, had made a name for himself as the chief at building materials producer CRH, whose portfolio he reshaped. He also moved its primary listing from Ireland to the US, and the share price rose.

BP announced his appointment last year after years of share underperformance against its rivals had prompted persistent takeover and break-up speculation.

Under Manifold, BP’s board shrank. Shell finance chief Simon Henry, who only joined BP in September, was among those who chose to leave.

In April, at BP’s annual general meeting, the board failed to get two of its resolutions accepted by shareholders, and Manifold’s appointment as chair got less support than typical.

While the board stood united at the general meeting, proxy adviser Glass Lewis said at the time Manifold was ultimately accountable for BP’s decision to exclude a resolution filed by climate activist group Follow This and thus recommended a vote against him. His appointment was confirmed by about 82 percent of votes, which is below a typical tally near 100 percent for directors.

BP’s stock is tanking in US markets amid news of Manifold’s removal. It is down 4.2 percent on the day. The stock is also down on the London Stock Exchange by 4.4 percent.