(Bloomberg) – bp Plc faced a shareholder backlash at its annual general meeting as investors rejected two resolutions supported by management and Chairman Albert Manifold received a significant protest vote.
bp CEO Meg O’Neill. Image: Bloomberg
Investors voted against management’s proposals that would have allowed fully virtual annual meetings and revoked previously approved climate related disclosure obligations. Just under 82% of shareholders voted in favor of Manifold’s election — a clear rebuke as directors typically receive approvals close to 100%.
The result is a blow for bp as it’s seeking to persuade investors that it’s on track to reverse years of underperformance. The company faced criticism from some shareholders after declining to put a resolution from activist group Follow This up for a vote. Investors including No. 8 shareholder Legal & General Group Plc said they would oppose Manifold’s election, while proxy adviser Glass Lewis & Co. recommended investors do the same.
By comparison, Manifold’s predecessor Helge Lund, the key backer of bp’s 2020 pivot attempt into low-carbon ventures, received 96% of the vote in 2024. That support came after Lund’s selected chief executive officer, Bernard Looney, was ousted for inappropriate conduct.
The general meeting was the first for both Manifold and new CEO Meg O’Neill, whotook the reinsof the UK energy giant earlier this month with a mission to streamline the business and focus on oil and gas production. Manifold, a former construction materials executive, assumed control of the board in October warning oftough decisions, following calls for change from activist investor Elliott Investment Management.
Manifold and the board fielded shareholder questions for over an hour at the AGM. Responding to concerns over the board not allowing the Follow This resolution, he said bp didn’t block it.
“We all live life by certain rules,” Manifold, 63, told the investors. “If you don’t submit a resolution in compliance with the rules, we are legally bound not to accept it,” without explaining what requirements the proposal failed to meet.
The resolutions on virtual AGMs and against climate disclosure obligations both received about 47% support. Special resolutions need to receive 75% support.
Norway’s $2.2 trillion sovereign wealth fund was among investors thatsupportedManifold’s election.
bp has pledged more investment into oil and gas, something Elliott and other investors had been urging.
That has helped the shares recover after years of underperformance. This year, bp is second only to TotalEnergies SE among the top five oil majors, with a gain of more than 30% in dollar terms after energy prices surged.
The shares were little changed after the AGM.
O’Neill has already moved toreshapethe company’s structure and leadership, simplifying it into two divisions — one focused on exploration and production, and another on refining.
But she faces an uphill battle to bring net debt to a target of $14 billion to $18 billion by the end of 2027. This quarter net debt is rising to $25 billion to $27 billion, excluding hybrid bonds and lease obligations, according to bp’s latest guidance.
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