- BP takeover rumors
- CEO search ongoing
- Internal and external candidates
Tuesday evening, BP’s board of directors convened to make the final decision regarding Murray Auchincloss’s appointment as the company’s next permanent CEO.
On Tuesday evening, BP directors convened to finalize the appointment of interim CEO Murray Auchincloss as the organization’s permanent leader.
The board of the FTSE-100 oil major has convened at a hotel in the heart of London to finalize the arrangements regarding the appointment of Mr Auchincloss as Bernard Looney’s successor.
They will likely be disclosed on Tuesday evening or Wednesday before the opening of the London Stock Wednesday.
It will extend BP’s 116-year streak without appointing an alien to its highest-ranking executive position if confirmed.
The company’s board has included Mr. Auchincloss since Mr. Looney appointed him finance chief four years ago.
It is widely believed that he received substantial backing from institutional shareholders in BP. This occurred throughout the recruitment procedure overseen by Helge Lund, the organization’s chairman.
Nonetheless, some investors had hoped that Mr. Lund would approach Charles Woodburn. BAE Systems CEO and energy industry veteran, he may become the company’s future head.
Strategically speaking, BP’s decision to forego the hiring of an external candidate for the position of CEO for the first time in the company’s 114-year history is significant.
Mr. Looney tried to reposition the organization to embrace the energy transition and limit its fossil fuel use.
However, investors did not unanimously support that strategic shift, as evidenced by the increasing valuation disparity between BP and its competitor, Shell.
BP closed on Tuesday at 452.3p, representing a market capitalization of £77.8 billion.
Shell is worth more than £160 billion.
Takeover Speculation and Leadership
Recent BP performance has reignited rumours that the company could be the target of a takeover, even though the UK government would be adamant that one of its most prestigious companies become a subsidiary of a foreign energy major.
Intermittent rumours have also circulated regarding a potential partnership between BP and Shell. However, notwithstanding BP’s leadership uncertainty, there is no evidence to support the integrity of such a proposition.
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A pursuit for a new CEO has been underway at BP ever since September when Mr Looney was terminated for deceiving the board regarding personal relationships with colleagues.
The company announced in December that it had cancelled potential payments to Mr Looney in excess of £32 million, including over £1 million that he was ordered to repay BP.
In the same month, Reuters reported that BP’s director of trading and shipping, Carol Howle, was an internal candidate. Additionally, the head of customers and products, Emma Delaney, was also considered.
The search firm Egon Zehnder International has guided BP’s directors regarding the recruitment procedure.
Mr. Lund indicated that consideration is being given to both internal and external candidates.
