Ousted BP chairman gears up for legal battle with oil giant

Albert Manifold, the ousted BP chairman, is heading for a potential legal showdown with the oil giant for millions of pounds he believes are owed after his dismissal.

The Irishman, 63, who was sacked last month because of claims of “bullying”, was in line to earn £1m this financial year, on top of £888,000 in fees last year, BP’s annual report showed.

It is not known how much he has received, but Manifold’s lawyers estimate he could be owed as much as “a few million pounds”.

Sources close to Manifold said he may pursue legal action to recover any loss of earnings resulting from his sacking.

“We don’t yet know BP’s position, but he’s considering all options,” one source said.

Bitter war of words

Manifold has appointed lawyers at Mishcon de Reya to represent him, fuelling expectations that he is gearing up for a bitter legal tussle with his former employer.

As well as contesting any pay that is withheld, it is understood lawyers for Mr Manifold are investigating whether there are grounds for additional legal action including breach of contract, unfair dismissal and defamation.

His abrupt dismissal from BP after less than eight months in post descended rapidly into a bitter war of words after the Irishman claimed allegations about his conduct were “lies”.

While Manifold has not spoken out since the aftermath of BP’s shock decision, he has been the subject of a series of anonymous briefings. Further questions have since been raised about his character and behaviour, including when he was chief executive of cement supplier CRH.

Detailed yet unattributed accounts that have emerged included his use of five-star hotels in London while at BP and attempts to seek jobs for friends and family members.

The reports contradict Manifold’s claims to have been a frugality advocate during his short time at BP.

‘Lies told about me’

However, the minutiae contained in the reports contrast starkly with the vague reasons that BP gave for Manifold’s departure.

The company said he had left with “immediate effect” after “serious concerns” were raised.

Dame Amanda Blanc, BP’s senior independent director who led Manifold’s appointment, added: “Albert has helped bring a welcome focus and pace to BP’s transformation. However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.”

Responding to the claims, Manifold acknowledged he had “pushed hard and challenged people directly”, but added: “What I do not accept is that lies can be told about me, nor that anyone should be allowed to hide behind anonymity when commenting on my time at BP.”

Manifold was forced to respond on Friday to allegations that high-flying executives were lavished with luxury foreign gatherings, including Ferrari test drives, private jets and a travelling sommelier when he ran CRH.

A spokesman said: “Albert had an 11-year tenure as chief executive of CRH, during which the company’s market capitalisation grew by over 400pc ... one of the most successful runs of any European chief executive of his generation.

“Manifold stands on his record. His mandate at CRH was to grow shareholder value, build a global business, win market share and cement relationships across multiple continents. His objective as chair of BP was entirely different.”

The manner of Manifold’s sacking also contrasts with the effusive words of Dame Amanda when he was appointed last July. “His impressive track record of shareholder value creation at CRH demonstrates he is the ideal candidate to oversee BP’s next chapter,” she said.

“He transformed and refocused CRH into a global leader by building on its rich heritage to deliver superior growth, cash generation and returns.”

BP declined to comment.

-The Telegraph