FT BOARD DIRECTOR PROGRAMME NEWSLETTER

This week, one company has dominated the business headlines. The boardroom scandal at energy giant BP is the story none of us can stop talking about - it’s rare, after all, for such a public fallout to occur at the very highest levels of a FTSE 100 company. 

The dismissal of Chair Albert Manifold last week, following issues with “governance standards, oversight and conduct” is mired in controversy. Manifold himself denies any wrongdoing, while Chief executive Meg O’Neill continues to stand by the company’s decision. 

Looking at the story through a boardroom lens and putting aside the drama, there is a fundamental question here about the role of the board, and ultimately the power it can and should wield. Arguably the most central role the board of directors can play is to ensure that the leadership team, both executive and non-executive, are acting in the best interests of the company. 

In this case, whatever you believe about the bullying claims levelled against Manifold, there seems to have been a fundamental lack of understanding and cohesion. Board recruitment isn’t just about experience - the different personalities and skills around the table need to compliment each other and ultimately be more than the sum of their parts. All eyes are now on BP - and O’Neill in particular. The choice they make for Manifold’s replacement could mean the difference between weathering this particular storm or losing the trust of its shareholders for good.