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BP likely to appoint new CEO during Q1 24 - sources
New CEO could be named when BP issues 2023 results
Board investigating if Looney violated code of conduct
Looney's remuneration decision expected by year end
LONDON, Nov 30(Reuters) - BP's search for a new chief executive is set to extend into the first quarter of 2024, three sources told Reuters, while the board's probe into whether previous CEO Bernard Looney breached the code of conduct in his undisclosed personal relationships with staff drags on.
The oil company has been in turmoil since Looney's resignation in September, company sources told Reuters, and the share price has underperformed rival Shell since then amid investor uncertainty over BP's future strategy
The rest of that Reuters' piece makes for interesting reading...
NEW CEO
Lund and BP's board are running a process to select a permanent CEO, and the search includes internal and external candidates, BP said in its statement.
The board is likely to appoint the new CEO in the first quarter, and they could be named to coincide with BP's full year earnings in February, the sources said. BP declined to comment on the timeline of the process.
Interim CEO Murray Auchincloss, the chief financial officer under Looney, has sought to maintain the company's focus on day-to-day operations while publicly, as well as in company town halls, refusing to say whether he wanted the permanent job.
But privately, 53-year-old Auchincloss, whose partner is also a BP employee - a relationship he had previously disclosed - indicated he was interested in the top job, according to two sources close to the company.
Auchincloss did not respond to a request for comment.
His appointment to the permanent job, which RBC Capital Markets analyst Biraj Borkhataria said was likely, would offer a sense of continuity on strategy, investors said.
Auchincloss was key in formulating changes Looney made in February to the firm's energy transition strategy which included slowing down its retreat from oil and gas and reducing spending on renewables in an effort to improve returns.
RBC's Borkhataria said that an external pick for CEO "could add more uncertainty to the overall strategy, while also raising questions on board competence. We see the confirmation (of Auchincloss) as important symbolically to show a steady ship."
If the new CEO Is announced Q1 / 24, IWould imagine there could be a 3-6 month notice period if currently engaged else were. so some time before they get behind the desk.
Why wouldn't you want the top job if you were CFO, its a shoe-in no risk opportunity in a business you know inside out, work for 2 /3 and resign with more money than you could ever spend
I've always thought Auchincloss would be a considerable upgrade on Looney. With Auchincloss playing a key role in reining in Looney and slowing down its retreat from O&G, he's listening to shareholders. If he gets the job, he might tweak those numbers again, which the market will like. BP is firing on all cylinders presently, with the exception of offshore wind, where everyone is hurting. I'm on board with its integrated energy strategy and see Auchincloss as the man to deliver that. With a 4.7% dividend and 7% buyback in the last 12 months, considerable value is being created, which might not be reflected in today's share price, but which the market will recognise at some point.
Digby thanks for posting,that was all I could see.
Interesting times
The only challenge with Murray from what I've heard is he hasn't ever ran a business operation, which is seen a must-have in bp ceo candidates. So if he does get the nod, and there are certainly several reasons why he should, it would be a departure from the norm - The board would then have to fill his c-suite with proven business operators to lighten some of the burden from him. I believe bp currently has this anyway so he gets my nod as he is more than adept at handling investors
WP
Personally would say if they pick Murray, they should see if Bob Dudley would come back as a mentor for him.
Even if only for a year.
Just to be his independent advice.
An oil voice in his ear he can trust with no agenda.
I think that would say a lot for BP values going forward.
I think bringing dudley back is a mis-step - it screams to investors that the board isnt confident in its own choices. Time to move on
Murray was Bob's EA, so arguably coached him when he first arrived at SJS.
WP, "I think bringing dudley back is a mis-step - it screams to investors that the board isnt confident in its own choices. Time to move on" - you are probably right!
However, the board may be confident in themselves, but I don't see a lot of confidence in them, certainly not on this board. Maybe they should go before an appointment is made. Auchincloss is good enough as caretaker and yes, maybe he will be OK with a good mentor like Bob D.
Seems strange to me that if they were to select murray as CEO, This would have been done by now as the board would already be familier and aware of his capabilities.
Yes, agreed. However, it could also just be smoke and mirrors; to show they went through a fair, broad search, yet still want to appoint Auchincloss?!
Expensive smoke and mirrors, if so. Egon Z very very expensive, but in fairness one of the best.
I’ve said several times the BP way was all about going through the process, so everything looks ok, then very often we saw the person doing the job being given the job.
Seen it dozens of times, we all knew who was getting the job, but everything dragged out,while it was seen to be done properly.
Maybe not quite at this level, but certainly middle management.
Big spend on E-Z charged with sourcing the best man/woman for the job - takes the heat off of our BoD - if the person they recommended turns out to be a dud.
(a bit like a BoD opting for a safe shares buyback campaign - rather than progressing the business by expanding via acquisitions/product/market/technical strategies).
Invstrat
It’s just like a football team search for a new manager,
we had a lot of people interested.
We drew up a short list.
We did our interviews,and strangely enough it turned out we already had the best man here doing the job already.
I just hope whoever comes in is the right person to lead BP forward.
It’s a very important time, wherever the future leads BP
Take your point MorY….. you knew your team and what type of manager it needed to succeed in its league - without devolving the responsibility to outsiders.
There’s a lesson there ;)
Busman
There must be a cut off time after which the only answer is Murray.
He cannot be acting CEO for a year and not get the job.
So if they cannot get someone in a reasonable time scale from January,it’s looking more likely to be him.
Also put yourself in his shoes, if you were acting CEO for 6 month plus and did not get the job, you would probably look for another job.( as you have probably missed your one chance)
So longer it goes on more likely it could be Murray.
Just how I see it.
Meoryou,
Appreciate your views, and i have no dought that murrey will move on if denied the post. have to waut and see i guess, but the delay is not a good thing for BP.
Maybe he doesn't even want the top job, has there been any confirmation he wants it?
Cong
“ But privately, 53-year-old Auchincloss, whose partner is also a BP employee - a relationship he had previously disclosed - indicated he was interested in the top job, according to two sources close to the company.”
Was in an article posted on here 30 th November at 11:00.
Doesn’t mean it’s true, but it’s a waiting game till it all settles out
See my comment from a few days ago re: working for a few years and having more money you could ever spend. He’s still young at 53, Murray can do this for 6/7 years, steer bp through to 2030 delivery and then join the non exec gravy train and make more than he ever earnt to date
Well you Looney Lovers (strategy) have been whipping yourselves up into a frenzy during COP28. The announcement of BP's purchase outright of Light Source was met with rapturous applause. I hope Light Source goes on to be an exstremly profitable business which can raise capital independently of core BP and does not become a drain on the oil and gas business.
With regard to Murray Auchincloss automatically being made CEO would be a mistake. Truelly Murray has been an Outstanding CFO and should be congratulated. His presence during Looney's presentations demonstrated his abilities and made him shine considerably. However as the Top Man he is exposed as never before. With Looney's assembled Green Team around him I'm sure he is comfortable, but is he experienced enough to deal with the core business. I'm not so sure. This is why I hope this selection process isnt rigged and honest grilling of the candidates oil and gas experience is a main consideration. May the best man or woman prevail.