Oil giant BP suffers AGM shareholder revolt

LONDON — British energy major BP suffered a shareholder revolt at its annual general meeting on Thursday, following a tense clash with investors over corporate governance and climate transparency.

BP failed to get majority shareholder approval on two highly anticipated motions, which would have permitted online-only AGMs and retired two company-specific climate disclosure obligations. Each resolution required a 75% vote in favor to pass.

A majority of 81.8% voted in favor of electing Albert Manifold as chair, a resolution that has been in sharp focus following the board’s move to block a proposal put forward by Dutch activist group Follow This.

Board members require 50% of the vote to be elected, and they typically receive close to 100% support.

Some activist investors had said even a 5% vote against Manifold, who has only been in post as chair-elect since September, would represent a severe reprimand, particularly after a historic 24% vote against outgoing chair Helge Lund last year.

Ahead of the AGM at its Sunbury-on-Thames hub in Surrey, BP’s board blocked a motion tabled by Follow This that would have required the company to share plans on creating value for shareholders under future scenarios of falling oil and gas demand.

The contentious decision had raised eyebrows among some investors. Two influential proxy advisers, Glass Lewis and ISS, and one of Europe’s biggest asset managers, Legal & General Investment Management, had recommended shareholders vote against BP’s wishes.

Top investors, such as Norway’s mega oil fund Norges Bank Investment Management (NBIM), had thrown their weight behind BP’s management, along with several other board proposals.

BP had said its board, having taken legal advice, concluded that the Follow This proposal was not valid and would have been ineffective were it to have passed at the AGM.

The energy major is currently in the process of pivoting back to its core business of oil and gas, and away from renewables, with former Woodside Energy boss Meg O’Neill taking the reins as CEO at the start of the month.

Shares of the London-listed company are up more than 33% year-to-date, outpacing its British rival Shell and U.S. peers Exxon Mobil and Chevron over the same period.

This is a developing story. Please check back for updates.