Written by Shashia Nasala
(Reuters) -The president of BP Helge Lund said to step down, “Most likely during the year 2026”.
Lund supported the BP strategy for 2020 under the leadership of former CEO Bernard Loni to move away from oil and gas, including an ambition to reduce its hydrocarbon production by 40 % in this contract.
BP shares were low -performance competitors such as Shell and EXXON, as BP’s market value was about $ 84 billion at the present time less than half of the Shelas.
After gradual steps, away from that strategy – and leaving Lony in 2023 after it appeared, relations with colleagues – the new President Murray Usinglos announced in February a renewed focus on oil and gas.
“Now is the time to start the process to find my successor and enable an organized and smooth delivery,” Lund said in a statement.
Elliott Management, who built a share of approximately 5 % in BP according to the sources, wants more change, including the program to get rid of the most ambitious assets compared to the purpose of stripping the group of $ 20 billion until 2027.
BP shares decreased by 1.7 % in early trading compared to a 2 % decrease for a wider index of energy companies.
Sources told Reuters that Elliot met with other shareholders to discuss issues, including the potential changes of leadership. The Elliot Administration refused to comment on Friday.
“For many investors we talked to, Helge was seen as the chief architect of a previous strategy (2020), while he also appointed the former CEO, which ultimately led to a twice the price of shares over many years,” said Burg Borsataria, an analyst at RBC.
“Removing voluntarily may be a better look than the alternative.”
Some investors who focus on the climate called for a vote against Lund’s re -election in AGM on April 17 because the shareholders were not allowed to carry a BP focus on oil and gas renewal.
“The need to vote against the president in 2025 did not disappear with his resignation in 2026,” said Mark Van Pal, founder of the Climate Contribution Group, who received the support decision from 17 % of BP shareholders in 2023.
“Investors concerned with good judgment must express their concerns.”
Lund received fees and benefits for its BP role at a value of 882,000 pounds ($ 1.15 million) for last year and carrying shares of 2.8 million pounds in February, according to the annual report of BP.
The successful candidate will join the Board of Directors and works with Lund before assuming this role, and at this stage, Lund will step down from the painting, probably in 2026.
https://media.zenfs.com/en/reuters-finance.com/78674ff3898d5a23459e80e23ee4ca46
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