The chairman of BP is quitting having overseen a disastrous flirtation with green energy – but only after a boardroom bust-up over the timing of his exit.
With the company under mounting pressure over its dismal share price performance, Helge Lund told the board he planned to stand down ‘most likely during 2026’ having chaired the firm since 2019.
However, the Mail understands that board members and some investors wanted him to leave earlier, sparking an argument that culminated in yesterday announcement.
BP said it has started searching for a replacement – but analysts warned it will not be easy.
And Ashley Kelty, analyst at investment bank Panmure Liberum, branded the job ‘a poisoned chalice’.
The process is being led by Amanda Blanc, the boss of insurance giant Aviva who also serves as BP’s senior independent director.
‘Having fundamentally reset our strategy, BP’s focus now is on delivering the strategy at pace, improving performance and growing shareholder value,’ said Lund. ‘Now is the right time to start the process to find my successor and enable an orderly and seamless handover.’
Lund’s job has looked precarious ever since notorious activist investor Elliott Management built a near-5 per cent stake and made clear it was seeking change.
Shares have fallen 25 per cent on the Norwegian’s watch – wiping £20billion off BP’s value – and lagged behind rivals such as Shell and US giants Chevron and ExxonMobil.
BP shares dropped 7.4 per cent amid global market turmoil yesterday.
Lund backed a shift towards green energy under former boss Bernard Looney only to help chief executive Murray Auchincloss perform a dramatic U-turn and double-down on fossil fuels.
‘If any major executive was on borrowed time, it was Lund,’ said AJ Bell investment director Russ Mould.
‘The occupant of that role is often the first to carry the can for corporate failures. Having overseen the company’s recently abandoned energy transition strategy it’s a surprise it has taken this long for Lund to announce he is stepping down.’
And suggesting Blanc might have her work cut out in finding a replacement, Kelty added: ‘Until it’s clearer as to whether Auchincloss has a future or is a dead man walking, it’s hard to see who may fit or want the role.’
Lund, 62, was paid £882,000 from his role at BP last year and since taking over as chairman has received over £5million. He is set to receive another £888,000 this year in fees.
He is also chairman of Danish drug giant Novo Nordisk where he was paid nearly £490,000 last year. Lund also briefly led British fossil fuel group BG Group, raking in a fortune when it was bought by Shell in 2016 for £47billion.
Lund’s exit comes as Auchincloss continues to pivot BP back towards oil and gas in a U-turn of the pro-green strategy drawn up by his predecessor Looney, who was sacked in 2023 after failing to disclose relationships with colleagues.
Now boss Murray Auchincloss in firing line
In the crosshairs: Murray Auchincloss
The planned departure of Helge Lund has seemingly failed to stem talk of change at the top – with speculation now mounting that the chief executive may be next.
Analysts at broker Panmure Liberum said the BP chairman’s looming exit was likely a move to ‘appease’ activist Elliott Management, which was ‘gearing up to get Lund removed’.
But they added that having pushed to oust the chairman, they could turn their sites on others at the top, with boss Murray Auchincloss in the crosshairs.
The broker said: ‘The question is now that they [Elliott] have one scalp, will they keep going?
‘We think they will, and will now turn attention to Auchincloss. His attempts to pivot BP away from green energy look half-hearted.’
Russ Mould, investment director at broker AJ Bell, added: ‘BP will hope Lund falling on his sword helps satisfy frustrated shareholders, in particular activist Elliott. Auchincloss will still be under significant pressure as the market looks for meaningful improvements in the group’s operational and financial showing.’
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