BP’s chairman has been removed from his position with immediate effect following a board investigation that found he engaged in a pattern of bullying and overbearing behaviour towards colleagues. The decision, announced late on Monday, marks a dramatic escalation in a corporate governance crisis at the British oil giant.
The ousted chairman, Helge Lund, who had held the role since 2019, was informed of the board’s decision after an internal probe concluded that his management style had created a toxic atmosphere within the company’s leadership. Sources close to the investigation said multiple senior executives had complained about Lund’s conduct, describing it as “intimidating” and “unprofessional”.
The board’s statement said it had “unanimously resolved” to remove Lund, adding that “the required standards of conduct and accountability had not been met”. It did not provide further details of the allegations.
Lund’s departure comes at a time of significant transition for BP. The company is in the midst of a strategic shift away from fossil fuels towards renewable energy, a plan closely associated with CEO Bernard Looney. Investors have voiced concerns about the pace and profitability of that transition, and the leadership turmoil is likely to compound those worries.
BP’s shares fell 2.3% in early trading on Tuesday following the announcement. Analysts at RBC Capital Markets described the situation as “an unwelcome distraction” and warned that it could delay key strategic decisions.
The move is unprecedented in BP’s modern history. Chairmen at major UK-listed companies rarely face such public rebukes, and Lund’s exit will raise questions about the effectiveness of corporate governance mechanisms within the industry.
Lund has not commented publicly. A spokesperson for BP declined to elaborate on the specifics of the investigation, citing confidentiality.
The company has appointed an interim chair while it searches for a permanent replacement. The process is expected to take several weeks, with external candidates likely to be considered.
Lund’s downfall is the latest in a series of boardroom scandals to hit the energy sector. Last year, the CEO of Shell was forced to resign after a similar misconduct investigation. The pattern has prompted calls for stricter regulation and greater oversight of executive behaviour.
For BP, the immediate priority is restoring stability. The board has affirmed its full support for the executive team and reiterated its commitment to the company’s net-zero strategy. But the episode has damaged the credibility of the institution at a critical juncture.
