BP CEO steps down after misleading board
- Bernard Looney has resigned from BP CEO position
- Looney has admitted to failing to disclose the full nature of past relationships with colleagues
- CEO position will be taken up by CFO Murray Auchincloss on an interim basis
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown:
“BP is one of the biggest players in British business, missteps of this magnitude aren’t what investors expect from one of the country’s most influential C-suites. Strong governance and conduct controls are rightly non-negotiables, and the emergence of a second round of allegations relating to Looney’s improper disclosure of relationships has proved a bridge too far.
BP is now in a position where a permanent replacement needs to be found. A clear path forward needs to be forged sooner rather than later to limit negative sentiment. This of course all lands at a time when oil majors are already grappling to boost their ESG credentials, which adds weight to the problem. Looney has spearheaded an aggressive and green-thinking strategy during his tenure, and replacing him with someone that can convince the market they’re up for carrying the mantle and sprinting with it, isn’t going to be an overnight task.
The recent oil price spike only provides a limited cushion under BP’s valuation, with longer-term forecasters far more concerned about strategy and how well-prepared BP is for the energy transition. In comparison to peers, BP’s net zero targets have cast shadows on other oil players, and the group needs to reconfirm its commitment and ability to get this done if it wants to remain in a preferable position.”
