- BP shareholders endorse Woodburn
- External CEO for the first time
- Woodburn considered for leadership
BP shareholders have endorsed Charles Woodburn, the current CEO of BAE Systems since 2017, as a potential successor to Bernard Looney as the organization’s next leader.
A number of BP’s most prominent shareholders have urged the company to approach BAE Systems CEO Charles Woodburn about the possibility of him becoming the FTSE-100 oil giant’s next CEO.
BP should, for the first time in its 114-year history, pursue the appointment of an external candidate as CEO.
Dr. Woodburn’s extensive prior experience at the oilfield services firms Schlumberger and Expro Group, coupled with BAE’s achievements during his tenure of six and a half years, deemed him “an obvious candidate” for the position, according to one individual.
This weekend, it remained uncertain whether BP or headhunters acting on the company had formally approached Dr. Woodburn, although multiple sources stated they were aware that he had been contacted in recent weeks.
Additionally, Dr. Woodburn’s receptivity to the energy company’s approach was unclear.
On Saturday, a BAE representative stated, “Charles is the CEO of BAE Systems. We are unable to comment on personnel matters pertaining to BP.”
A pursuit for a new CEO has been underway at BP ever since September, when Bernard Looney was terminated for deceiving the board regarding personal relationships with colleagues.
CEO Succession and Potential Candidates
The company announced last month that it had canceled potential payments to Mr. Looney in excess of £32 million. Including over £1 million that he was ordered to repay to BP.
Murray Auchincloss, the ex-CEO, is considered a strong candidate for the permanent position. He previously assumed the role of chief financial officer under Mr. Looney.
Reuters reported in December that BP’s director of trading and shipping, Carol Howle, was another internal candidate. Emma Delaney was also mentioned as a candidate and holds the position of head of customers and products.
If appointed, both individuals would become the first women to lead a significant oil company in the United Kingdom.
The search firm Egon Zehnder International is providing guidance to the directors of BP regarding the recruitment procedure.
The forthcoming CEO of BP will be tasked with determining whether to adopt the approach proposed by Mr. Looney. This strategy reduces BP’s carbon emissions while developing its renewable energy and greener fuel activities.
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BP, boasting a market capitalization of £81.1bn, is considerably larger than BAE Systems, which is valued at approximately £35bn.
Dr. Woodburn, who joined BAE in 2016 as COO, has been connected to leaving before.
BAE presented him with a seven-figure “golden handcuffs” share award in 2021 as an incentive to remain with the company despite an offer to assume the role of CEO of Rio Tinto, a London-listed miner.
The award became vested a year ago.
BAE’s stock has experienced a growth of over twofold since the Rio approach, primarily driven by the company’s meteoric sales surge following Vladimir Putin’s incursion into Ukraine.
BP confirmed that it was recruiting its next CEO but did not name applicants.
Helge Lund, the chairman of BP, has indicated that the organization is contemplating both internal and external candidates.
