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BP Chair Faces Shareholder Revolt at AGM
23 Apr
Summary
- BP's new Chair and CEO faced losing votes on two resolutions.
- Shareholder advisors and a top investor backed votes against BP's wishes.
- A resolution on company-specific climate disclosures was opposed.
BP's newly appointed Chair Albert Manifold and CEO Meg O'Neill faced challenges at their inaugural annual general meeting (AGM) on Thursday. Two crucial resolutions reportedly failed to achieve a simple majority, indicating significant shareholder dissent.
Major proxy advisory firms, Glass Lewis and ISS, along with a top-10 shareholder, LGIM, advised voting against BP's preferred outcomes. This opposition notably included a proposal to remove previous resolutions requiring company-specific climate disclosures. LGIM also indicated a vote against Chair Manifold.
Glass Lewis cited Manifold's accountability for excluding a resolution from climate activist group Follow This, which sought BP's strategy performance under declining oil demand scenarios. Norway's sovereign wealth fund and ISS, however, recommended support for Manifold.
Manifold defended the exclusion of the Follow This resolution, deeming it legally invalid. He also presented the virtual AGM resolution as a means to democratize shareholder participation. This AGM marked the first public appearance for both Manifold and CEO O'Neill, who recently assumed her role.
