British Petroleum CEO Resigns Amid Review Of His Personal Relationships With Colleagues; UK’s Top Companies Rocked With Leadership Crisis; Consequences of Sexual Misconduct Allegations

British Petroleum CEO Resigns

In the wake of a review of his personal relationships with colleagues, the CEO of oil giant BP, Bernard Looney, who had held the position since 2020, stepped down immediately as BP had initiated an investigation into alleged relationships between Looney and colleagues, marking the second such inquiry in two years.

The company stated that Mr. Looney admitted to not initially being “fully transparent” regarding these relationships; however, a company spokesperson emphasized BP’s strong values, with expectations for all employees, especially leaders, to embody these values and exhibit sound judgment to earn trust.

BP initiated the review of Looney’s relationships following an anonymous tip-off in 2022. At the time, the company found no breach of conduct; however, new allegations prompted another review, with Looney acknowledging that he had not been fully transparent in his initial disclosures.

The City of London Police is investigating these claims, while BP continues to cooperate with authorities. The company expressed its commitment to reviewing its organizational culture and procedures for handling employee complaints, adding that it also plans to hire a new chief people officer to oversee workplace conduct and culture.

The Successful Career Cut Short
Born in Ireland and raised on a farm, Looney spent his entire career at BP, joining in 1991 as an engineer and eventually becoming an executive team member in 2010.

During his tenure, he navigated BP through turbulent times, including the pandemic-induced drop in oil and gas demand and the conflict in Ukraine, which impacted energy prices and led BP to exit Russia.

Looney had also unveiled a plan to make BP net zero by 2050 but faced criticism from environmental groups for modifying his initial targets.

Meanwhile, BP clarified that decisions regarding Mr. Looney’s severance pay had not been made. The previous year, he received over £10 million in pay and bonuses due to record profits driven by surging oil prices.

The interim CEO will be the Chief Financial Officer, Murray Auchincloss, while BP searches for a permanent replacement.

The UK Top Bosses Scandals
Looney’s resignation adds to a series of high-profile executive departures in the UK, which have drawn attention to personal conduct in the corporate world.

The CEO of the CBI (Confederation of British Industry), Tony Danker, was dismissed in April due to workplace misconduct allegations. Similarly, Crispin Odey, the founder of a finance firm, left his hedge fund after facing allegations of sexual harassment by 13 women. He denied the claims.

CBI’s Tony Danker’s Case
CBI Director-General Tony Danker was dismissed immediately following an investigation into allegations of sexual harassment within the employers’ organization.

This investigation was conducted by law firm Fox Williams and has led to repercussions not only for Danker but also for the organization as a whole; additionally, three other CBI employees were suspended pending further investigation into various allegations of workplace misconduct.

The CBI was in the midst of damaging allegations related to a culture of sexual harassment within the organization, including claims of rape at a staff party in 2019.
As a result, the CBI took steps to cancel all external events, including its prestigious annual dinner, in its bid to regain trust.

Danker voluntarily stepped aside after the initial complaint against him, followed by further reports of sexual misconduct by senior CBI executives; these allegations are still under investigation by Fox Williams, with the CBI cooperating fully with any police inquiries into the matter.

The City of London Police confirmed that they are investigating these claims, though they are in the early stages of their inquiry.

Meanwhile, Danker responded to his dismissal on Twitter, apologizing for unintentionally making colleagues uncomfortable and asserting that the allegations had been distorted. He also expressed shock at being dismissed rather than having the opportunity to present his case, as initially indicated.

Due to legal confidentiality obligations, the detailed report that led to Danker’s dismissal was not made public.

Danker’s position was filled by Rain Newton-Smith, who previously served as the CBI’s chief economist and had a brief stint as a managing director for policy at Barclays.

Her primary mission, she stated, is to restore confidence in the organization, which has been deeply affected by the recent sexual harassment allegations. At the same time, CBI expressed its remorse for the organizational failure that led to these allegations and stressed that nobody should feel unsafe in their workplace.

The fallout from these allegations caused government ministers and prominent British businesses who are members of the CBI to distance themselves from the organization, with some even reviewing their memberships; Downing Street and several leading companies paused their engagements with the CBI pending the outcome of the investigations.

 

The Crispin Odey, Odey Asset Management Case
Prominent finance figure Crispin Odey left his hedge fund following allegations of sexual assault and harassment, as announced by the firm’s partners.

These allegations surfaced after a report in the Financial Times revealed that 13 women had accused Odey of misconduct spanning a period of 25 years.

Odey vehemently denied these claims and hinted at resisting his removal from the firm; Crispin Odey had been the head of the hedge fund he founded in 1991, managing assets that exceeded £10 billion at its peak.

He gained prominence as a supporter of Brexit and claimed to have amassed significant wealth as the value of the pound plummeted in the aftermath of the Brexit referendum.

The allegations reported by the Financial Times date back to 1998, with the most recent incident alleged to have occurred in December 2021.

However, it was disclosed that there will be a separation between Odey Asset Management Group, in which Odey had a majority stake, and Odey Asset Management LLP, referred to as the “partnership.”

The partnership’s executive committee confirmed the removal of Mr. Odey as a partner, stating that he will no longer have any economic or personal involvement in the partnership.

However, Odey has asserted that none of the allegations against him have been substantiated in a courtroom or investigation.