London – British energy major BP It faced a shareholder revolt at its annual general meeting on Thursday, following a tense clash with investors over corporate governance and climate transparency.
BP failed to win majority shareholder approval on two long-awaited proposals that would have allowed online-only AGMs and eliminated two company-specific climate disclosure obligations. Each proposal requires 75% votes in favor to pass.
A majority of 81.8% voted in favor of electing Albert Manifold as chairman, a proposal that has been in sharp focus following the board’s move to block a proposal put forward by the Dutch activist group Follow This.
Board members require 50% of the vote to be elected, and they typically receive nearly 100% support.
Some activist investors had said that even a 5% vote against Manifold, who has only held the position of chairman-elect since September, would represent a severe rebuke, especially after last year’s historic 24% vote against outgoing chairman Helge Lund.
Ahead of the AGM at its Sunbury-on-Thames hub in Surrey, BP’s board blocked a motion tabled by FollowThis that would have required the company to share plans to create value for shareholders under future scenarios of declines in oil and gas demand.
This controversial decision had raised concerns among some investors. Two influential proxy advisers, Glass Lewis and ISS, and one of Europe’s largest asset managers, Legal & General Investment Management, had recommended shareholders vote against BP’s wishes.
Top investors such as Norway’s mega oil fund Norges Bank Investment Management (NBIM) had thrown their weight behind BP’s management, along with several other board proposals.
BP had said that its board had concluded, after taking legal advice, that the resolution was not valid and would have been ineffective if passed at the AGM.
The energy major is currently in the process of returning to its core business of oil and gas, and away from renewables with the former. Woodside Energy Boss Meg O’Neill is taking over as CEO at the beginning of the month.
Shares in the London-listed company have surged more than 33% year-to-date, outperforming its British rival shell and American colleagues exxon mobil And beam At the same time.
This is a developing story. Please check back for updates.
