Title: Bernard Looney’s Resignation Rocks BP: A Closer Look at the Fallout
Introduction:
Bernard Looney, who spent 32 successful years at BP, unexpectedly resigned following revelations about undisclosed romantic relationships with colleagues. Looney’s departure has sent shockwaves through the company, leaving BP without the key figure behind its energy transition strategy. As the dust settles, questions about the extent of Looney’s relationships and the company’s cultural dynamics are emerging. This article aims to explore the circumstances surrounding Looney’s resignation, the reactions within BP, and the potential implications for the company.
I. Looney’s Abrupt Resignation:
1. Background: Bernard Looney had built a near-perfect career at BP over the last three decades.
2. Unraveling in Days: Looney’s resignation came shortly after the Financial Times reported his failure to disclose past romantic relationships with colleagues.
3. Impact on BP: Looney’s departure leaves BP without the key architect of its energy transition strategy.
4. Questions and Cultural Concerns: Shareholders are now questioning the lack of a clear message regarding the importance of preserving the company’s well-being. The extent and nature of Looney’s relationships are also being scrutinized, raising concerns about a potential cultural problem within BP.
II. Details of Looney’s Relationships:
1. Lack of Disclosure: BP has not provided details about the nature and number of Looney’s romantic relationships with colleagues.
2. Ongoing Investigation: An internal investigation is underway, with no indication of whether its results will be made public.
3. Misleading the Board: Looney resigned for misleading the board of directors after receiving an anonymous complaint about his past relationships.
4. Previously Discussed: Current and former employees, particularly those at BP’s London headquarters, claim that rumors and discussions about Looney’s relationships had circulated for years.
III. Questions about Due Diligence and Company Strategy:
1. CEO Selection Process: BP’s board of directors discussed Looney’s past relationships during the CEO selection process, concluding that they were not inappropriate and that they would not hinder his ability to serve.
2. Doubts and Investor Concerns: Industry executives and investors have raised questions about the level of due diligence conducted by the board. BP’s shares have underperformed since Looney’s appointment, and some investors remain skeptical of the company’s transformation strategy.
3. Uncertain Future: Shareholders speculate about whether BP remains committed to its energy transition goals without Looney at the helm.
IV. BP’s Response and Employee Reactions:
1. BP’s Statement: The company declined to comment beyond its initial statement announcing Looney’s resignation.
2. Atmosphere at BP: Despite the upheaval, employees at BP’s headquarters reportedly remain calm, having weathered previous sudden CEO turnovers.
3. Comparison to Prior CEO Departures: Looney’s sudden resignation is reminiscent of Lord John Browne’s departure in 2007 and Tony Hayward’s exit in 2010.
V. Looney’s Future and Company Fallout:
1. Uncertainty Surrounding Looney: It remains unclear what will happen to Looney, who has hired a prominent law firm to handle his situation.
2. Cleanup Operation: The oil industry jokes that this could be BP’s largest cleanup operation since the Gulf of Mexico oil spill.
3. Public Perception and Company Care: The handling of the situation may affect BP’s public image, potentially creating the perception that the company lacks concern for preserving its reputation.
Conclusion:
Bernard Looney’s abrupt resignation has sent shockwaves through BP, leaving the company without its key strategist for its energy transition goals. As an internal investigation unfolds, questions about due diligence, company culture, and the future of BP’s transformation strategy loom. It remains to be seen how BP will navigate these challenges and regain the trust of its shareholders and the public amidst this turmoil.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Bernard Looney has spent the last 32 years building a near-perfect career at BP. This week came undone in a matter of days.
The Irish chief executive resigned with immediate effect on Tuesday night, shortly after the Financial Times reported that he had to leave the company after failing to disclose past romantic relationships with colleagues.
His abrupt departure has left BP without the key architect of its energy transition strategy. The FTSE 100 company is also now facing questions about the extent and exact nature of Looney’s relationships, and whether his conduct reflects a wider cultural problem within the 113-year-old energy company.
“Why wasn’t there a clearer message that you don’t jeopardize the well-being of the company over this kind of thing?” asked a major shareholder.
BP has declined to detail the nature and number of Looney’s romantic relationships with his colleagues. An internal investigation is underway and the company has not said whether its results will ever be made public.
Officially, Looney, 53, has resigned for misleading the board of directors. He received an anonymous complaint about his past relationships in May 2022. Looney discussed the complaint at length with the board and then said he had nothing more to disclose, only for the company to receive a new set of accusations. as recently as last week.
From that point on, Looney’s tenure at BP quickly unraveled. It had been decided Tuesday that Looney would have to resign, but BP’s board and its external crisis communications teams expected to have a few more days to craft the message, according to people familiar with the matter. Within the company, few people were aware of the rapidly evolving situation.
Although his departure shook the business world, for some BP investors and employees the reason for his departure was not such a surprise.
Current and former BP employees, particularly those working at its London headquarters near Buckingham Palace, said the story of Looney’s romantic relationships with colleagues had been quietly discussed by staff for years.
Looney joined BP in 1991 when he was 21 and was married from 2017 to 2019.
One former senior executive, who left BP a few years ago after a long career and who knew Looney but rarely worked with him directly, said he could recall at least four relationships between Looney and other BP employees. While some of those women were Looney’s juniors at the company, the top executive said he was not aware of any relationships between Looney and the women under his direct supervision.
As is common in the appointment of top executives, BP’s board of directors discussed some of Looney’s past relationships during the CEO selection process. It concluded that there had been nothing inappropriate, that there was no suggestion of abuse of power and that this personal history would not hinder his ability to serve in the top job, people familiar with the process said.
Others were less sure that their romantic life would be trouble-free in the future. “We always knew it would turn on him,” said one person who worked with Looney. “It was a question of when.”
Industry executives and investors have raised questions about whether the board conducted the appropriate level of due diligence in naming Looney as CEO.
BP declined to comment beyond its statement on Tuesday. Looney did not immediately respond to a request for comment.
Pressure on Looney had already increased since the first internal investigation in May 2022, which was not made public at the time.
Looney had spearheaded the sector’s most ambitious transformation strategy, vowing to move away from oil and gas while increasing spending on its so-called “transitional growth drivers” such as electric vehicle charging and biofuels. But many investors were not convinced. BP shares have lagged behind its competitors since his appointment in February 2020.
A recent internal company survey even showed that many employees had difficulty understanding the strategy. In response, BP began this year with an effort to refine and better explain its plans.
BP Chairman Helge Lund has tried to steady the ship this week, assuring investors in a series of emergency meetings that BP’s strategy and operations would not be affected.
However, shareholders have speculated about whether BP will remain committed to its transformation without Looney at the helm.
“It will be interesting if management changes how capital is allocated to the energy transition versus conventional energy,” said one senior shareholder.
That could depend on who is named to replace Looney. lund has been ruled out as the next CEO and said that an internal and external search has been launched. Outside of BP executives, Maarten Wetselaar Analysts see Wael Sawan as a possible choice.
Looney had made mistakes before. In late 2021 he became the target of UK tabloid ire after describing BP as “an ATM”, at a time when many families were struggling with rising energy bills.
The Sun newspaper, the UK’s best-selling newspaper, appeared on its front page this week with an article about its fall under the title “The cost of loving the crisis.”
Despite the whirlwind resignation, BP staff said the atmosphere at the company’s headquarters in St. James’s Square had been “surprisingly calm” this week, noting that many employees had already worked through abrupt CEO ousters at least twice before.
Lord John Browne resigned as BP chief executive in 2007 after lying in court about how he met his partner. His successor, Tony Hayward, left the company in 2010 after A drilling platform exploded in the Gulf of Mexico. killing 11 people and causing the largest oil spill ever recorded in US waters.
Hayward had a career searching for oil in Iraqi Kurdistan and served as chairman of Glencore, while Lord Browne eventually received sympathy for his coming out as a gay man and took on a series of senior business and government positions.
It is still unclear what will happen to Looney. In an interview with the Financial Times In 2022, Looney, who has no children, said BP was his life. “I don’t do much else,” he said.
In the short term, he could find himself embroiled in a fight with his former employer over millions of pounds in redundancy payments and refunds. After leading BP to record profits of $28 billion last year, Looney’s salary doubled to £10 million, including £6 million under a long-term share award.
BP said when announcing his resignation that no decision had been made “regarding the remuneration payments to be made to Mr Looney”.
One of the many off-color jokes circulating in the oil industry this week is that this could be BP’s largest cleanup operation since the Gulf of Mexico oil spill.
Looney has hired Mishcon de Reya, the London-based law firm with a Rottweiler reputation for defending its clients’ interests, according to two people familiar with the situation.
Meanwhile, shareholders and current and former BP employees have been left wondering what exactly happened: The company’s statement did not address many questions, such as whether Looney’s conduct or the relationships he concealed from the board were considered appropriate for a person in his position.
BP has not said whether any of the relationships occurred while Looney was in the top job.
“The problem for any company is so bad looking”said a veteran oil industry analyst. “To the public, there is a risk that it will appear that the company in question simply does not care.”
Do you have information about this story? We want to hear from you. You can contact our investigations team confidentially by calling +44 777 570 5884 or investigations@ft.com.
—————————————————-