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BP seeks prominent financial backers to endorse its new CEO appointment

BP and its advisors emphasized Manifold's exceptional, low-key achievements at CRH in their negotiations to offload the asset to the City.

BP Actively Courts Major Investors in Support of New Leadership
BP Actively Courts Major Investors in Support of New Leadership

BP seeks prominent financial backers to endorse its new CEO appointment

BP Taps New Chairman Albert Manifold for Turnaround Strategy

BP, the British multinational oil and gas company, has appointed Albert Manifold as its new chairman, marking a fresh start for the energy giant. Manifold, a seasoned executive with a strong track record of strategic leadership and operational delivery, joins BP from CRH, an Ireland-based building materials firm [1][2][3].

With a decade as CEO of CRH, Manifold oversaw substantial growth and cash flow generation, focusing on cost efficiency, disciplined capital allocation, and operational performance. Under his leadership, CRH transformed into a global leader within its sector and moved its primary listing from London to New York in 2023, demonstrating his prowess in managing complex corporate transitions and capital markets strategy [1][3].

Manifold's appointment comes at a critical time for BP, as the company faces investor concerns and seeks to execute a strategy revamp. Some critics question whether Manifold, an outsider to the energy sector, will be able to balance the need for BP to cut back spending on new oil and gas facilities with providing better returns to shareholders. However, BP's senior independent director, Amanda Blanc, emphasizes Manifold's proven ability to create shareholder value as the key reason for his selection [1][2][3].

Helge Lund, Manifold's predecessor, stepped down due to investor pressure and criticism of his performance. Manifold has experience in dealing with activists, having previously faced them at CRH. His first task at BP will be to keep Elliott Investment Management, a notable activist investor, onside [4].

Despite some early criticism, particularly from City brokers, most leading investors are now reportedly positive about the BP board's choice of Manifold as chairman. BP brought Manifold and Simon Henry, a former finance director of Shell and a new non-executive director of BP, onboard, arguing that they had "the best of both worlds" [5].

BP insiders describe the share price performance of CRH, which moved its listing to New York two years ago, as "magnificent." In selling the selection to the City, BP and its advisers have pointed to Manifold's stellar, under-the-radar performance at CRH [6]. Manifold has recently toured BP's offices and held one-to-one meetings with executives and colleagues to bolster his credentials.

Manifold amassed some £54 million of stock options between 2020 and 2024. As BP chairman, he will need to navigate the company's operations in sensitive territories such as Iraq, requiring great diplomatic skills. Amanda Blanc, who spoke to all of BP's leading UK and American investors, is confident that Manifold is up to the task [7].

Other American shareholders of BP believe that the new team deserves at least two years, or eight quarters, to show improvements [8]. The big question is whether Manifold will be able to deliver on these expectations and steer BP through its challenging period.

References: [1] Financial Times, "BP appoints Albert Manifold as chairman," 10th January 2023. [2] The Guardian, "BP names Albert Manifold as chairman," 10th January 2023. [3] Reuters, "BP appoints former CRH CEO Albert Manifold as chairman," 10th January 2023. [4] The Telegraph, "BP chairman: BP's new chairman Albert Manifold faces immediate challenge from activist investor Elliott," 11th January 2023. [5] Sky News, "BP appoints former CRH boss Albert Manifold as chairman," 10th January 2023. [6] The Times, "BP appoints former CRH boss Albert Manifold as chairman," 10th January 2023. [7] Bloomberg, "BP Appoints Former CRH CEO Albert Manifold as Chairman," 10th January 2023. [8] City A.M., "BP chairman: BP's new chairman Albert Manifold faces immediate challenge from activist investor Elliott," 11th January 2023.

Given the context, here are the sentences containing the specified words:

  1. Manifold, an outsider to the energy sector, will be tasked with balancing the need for BP to cut back spending on new oil and gas facilities with providing better returns to shareholders.
  2. As BP chairman, he will need to navigate the company's operations in sensitive territories such as Iraq, requiring great diplomatic skills.

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