- BP CEO Bernard Looney Resigns Amid Allegations of Undisclosed Relationships
- Market Reaction and Uncertainty Following Looney’s Shock Resignation
- BP’s Future Leadership and Challenges in the Energy Transition
The 53-year-old incumbent had held the position for less than four years. The energy giant said in a statement that he confessed to not being “fully transparent” about his relationships with staff.
BP’s shares have been dented following the shock resignation of its head amid allegations over “personal relationships with colleagues”.
Last night, Bernard Looney resigned as chief executive of the British energy behemoth less than four years after he was appointed to the position.
The 53-year-old, who earned more than £10 million in wages, bonuses, and other benefits last year, is alleged to have neglected to disclose the relationships as required by the organization.
BP announced in a statement that Mr. Looney was resigning “effective immediately.”
The statement continued, “Mr. Looney has informed the company today that he now acknowledges he was not fully transparent in his previous disclosures.”
“He did not provide details of all relationships and accepts he was obligated to make more complete disclosure.”
In May 2022, the business “received and reviewed allegations” about Mr. Looney’s workplace ties.
“During that review, Mr Looney disclosed a small number of prior relationships with colleagues before becoming CEO,” the statement continued. No violations of the company’s code of conduct were discovered.
“However, Mr. Looney provided the board with assurances regarding the disclosure of his past intimate relationships and his future conduct.
“Recently, additional allegations of a similar nature were received, and the company promptly launched an investigation with the assistance of outside legal counsel. This procedure continues.”
A spokesperson added, “The board expects all employees to conduct themselves by the company’s core values.”
Leaders must set an example and use good judgement to encourage others.
Regarding Mr. Looney’s future compensation, no decisions have yet been made.
Murray Auchincloss, chief financial officer of BP, will serve as the interim CEO after BP’s CEO.
As investors digested the ramifications of Mr. Looney’s departure, the value of the company’s stock declined to around 1% below its opening price in London on Wednesday morning, matching the reaction on US markets the evening prior.
He took office in February 2020 promising to transform the 114-year-old corporation to zero net emissions by 2050.
Since joining BP in 1991 as an engineer at age 21, he has spent his entire career there.
Mr. Looney succeeded Bob Dudley, who had led BP through the aftermath of the 2010 Deepwater Horizon oil disaster.
Senior market analyst at OANDA, Edward Moya, stated, “This was unexpected and could cast doubt on BP’s transition to renewable energy”.
BP share prices might not get rocked that severely as CFO Auchincloss appears poised to take over. Whoever becomes BP’s permanent CEO will have a greater influence on the stock price.”
Following Russia’s invasion of Ukraine, energy prices dropped precipitously, resulting in a significant decline in BP’s profits for the first half of its fiscal year.
The oil and gas behemoth reported net profits of slightly more than $2.5 billion (£2 billion) for the three months ending June 30.
Half of last quarter’s $5bn (£4bn) profit and substantially lower than last year’s $8.45bn (£6.5bn).
