Helge Lound, BP chairman, to resign amid Elliott campaign

BP Chairman Helge Lund plans to step down in "likely 2026", and the process of selecting his successor has begun, BP announced on Friday. This comes amid a campaign from activist hedge fund Elliott to bring about more change within the company.

Lund had backed BP’s 2020 strategy, which included an ambition to reduce its hydrocarbon production by 40% in this decade. This plan saw BP’s shares perform below their peers, such as Shell and Exxon.

After taking gradual steps to move away from this strategy, devised by the then-CEO Bernard Looney who left BP 2023 when it was revealed that he hadn't disclosed relationships with his colleagues, new Chief Murray Auchincloss announced in February a renewed emphasis on oil and natural gas.

Elliott Management wants more changes. Some shareholders, especially those who are more concerned about climate change, have talked about possible leadership changes. Lund is up for reelection at BP’s annual shareholder meeting on April 17.

In a press release, Lund stated that "now is the time to begin the process of finding my successor in order to ensure an orderly and seamless transition."

The candidate who is selected will work alongside Lund before taking over the role. Lund will then step down as a board member, probably in 2026. Reporting by Shadia Nazarella in London, Chandini Monnappa from Bengaluru and Janane Venkatraman and Rashmi ich. Editing by Jan Harvey and Janane Aich.

(source: Reuters)