By Shadia Nasralla and Stephanie Kelly LONDON, April 23 (Reuters) - BP said it had failed to get majority approval from shareholders for two special resolutions put forward at the oil and gas major's
BP shareholders reject two board proposals as chair gets lower-than-typical support
BP Annual General Meeting: Shareholder Decisions and Board Support
By Shadia Nasralla and Stephanie Kelly
Initial Results from the AGM
LONDON, April 23 (Reuters) - BP's new Chief Executive and Chair failed to get shareholder backing for two board-proposed resolutions at their first public outing at Thursday's annual general meeting, initial results showed.
Chair Albert Manifold's Response
Chair Albert Manifold, whose appointment received lower-than-typical support, said the group did not receive the necessary number of votes to pass resolutions which would have permitted virtual AGMs and allowed BP to scrap two previous resolutions requiring company-specific climate disclosures.
Leadership and Strategic Changes
The meeting marked the first major test for BP under its new leadership after BP's strategy revamp about a year ago, funnelling billions of dollars of spending from low-carbon projects into oil and gas.
Shareholder Sentiment
"While we appear to have overwhelming support for the direction of travel for the company, it seems very clear that the two special resolutions – one relating to our articles and one relating to historic resolutions – have not reached a simple majority," Manifold told investors at the AGM.
Board Support and Activist Influence
Manifold's Support Compared to Predecessors
Manifold, who became chair in October and has underscored the need to further reshape BP's portfolio to boost profitability, received 81.8% support, initial results showed.
Board members need 50% of votes to be elected and typically achieve tallies near 100%. Manifold's predecessor Helge Lund received an unusually low 75.7% at his final AGM.
Activist Hedge Fund Elliott's Perspective
U.S. activist hedge fund Elliott, which has a stake of around 5% in BP, thinks Manifold has been a positive catalyst for change and looks forward to continuing to work with him, a source familiar with the situation told Reuters.
Climate Resolutions and Shareholder Voting
Proxy Advisers and Shareholder Positions
CLIMATE RESOLUTIONS
Major proxy advisers Glass Lewis and ISS, and top-10 BP shareholder LGIM supported votes against BP's wishes ahead of the AGM, including opposing BP's proposal to scrap the two resolutions requiring company-specific climate disclosures.
Glass Lewis and ISS Recommendations
Glass Lewis said Manifold was ultimately accountable for BP's decision to exclude a resolution filed by climate activist group Follow This and thus recommended a vote against him. The resolution called on BP to disclose how its strategy would perform under scenarios of declining demand for oil and gas.
LGIM said before the AGM it would vote against Manifold.
Norwegian Wealth Fund and ISS Support
Norway's $2.2 trillion sovereign wealth fund, the world's largest, and ISS recommended a vote in support of Manifold, who said on Thursday the Follow This resolution was not legally valid and therefore BP could not include it at the AGM.
Other Climate Activist Resolutions
Another resolution tabled by climate activist group ACCR received 25.9% support.
Leadership Debut and Future Outlook
First AGM for Manifold and O'Neill
Thursday's AGM was Manifold's first as chair and Meg O'Neill's first public appearance as CEO, after starting in the role in April and becoming its chief executive since 2020.
O'Neill's Focus on Financial Strength
O'Neill emphasised the need for BP to strengthen its balance sheet and be rigorous in its spending.
(Reporting by Shadia Nasralla and Stephanie Kelly; Editing by David Goodman and Alexander Smith)
