BP has announced that its chairman, Helge Lund, will step down, following increasing pressure from shareholders, including influential activist investor Elliott Management.
Lund, who has served as chairman since January 2019, is expected to leave in 2026 after his successor joins the board. The company has already initiated a search for his replacement, which will be led by Amanda Blanc, BP’s senior independent director.
Lund’s departure comes amid significant changes in BP’s strategy. Earlier this year, BP made a dramatic shift in its focus, moving away from its previous commitment to reduce oil and gas production and investing more heavily in renewable energy. In February, BP unveiled plans to increase annual investments in oil and gas to $10 billion by 2027, while scaling back its low-carbon investment plans by more than £4 billion. This shift has been met with mixed reactions, with analysts largely welcoming the renewed focus on hydrocarbons, though the company continues to face pressure from shareholders.
Elliott Management, which acquired a near 5% stake in BP, has been pushing for more substantial changes in the company’s strategy, including a faster pivot to renewable energy and a more aggressive asset disposal program. The hedge fund has been a vocal critic of Lund’s leadership, with some investors calling for his removal at BP’s upcoming annual general meeting on April 17. This comes in response to BP’s recent reversal on its 2020 strategy, which had aimed to cut oil and gas output by 40% by the end of the decade.
Lund, in a statement, emphasized that with the company having “fundamentally reset” its strategy, now was the right time to begin the process of finding his successor. He added that the transition would ensure an “orderly and seamless handover.” Blanc will lead the search for a new chair, aiming to find a candidate with the right experience to help guide BP through its evolving strategy and manage its board.
Despite the ongoing challenges, BP remains focused on implementing its revised strategy, with CEO Murray Auchincloss under pressure to improve the company’s financial performance after a period of underperformance relative to industry peers.
Lund’s tenure has not been without controversy. Before his appointment at BP, he led BG Group, which was acquired by Shell, and previously served as CEO of Equinor (formerly Statoil). His compensation package at BG Group was a point of contention among shareholders, who pushed for changes to link his pay more closely to company performance.
CNBC, Bloomberg, the Guardian, and Reuters contributed to this report.
