A quarter of BP investors have voted against the re-election of its chairman, Helge Lund.
Shareholder frustration
The rebellion reflects the frustration of shareholders at BP’s lacklustre performance and what seems to be a lack of prioritisation of the share price, multiple media outlets reported following the firm’s 2025 AGM.
BP shares have fallen 13% in the last year as compared with a 5% drop for Shell.
Fundamental reset
In February BP announced a fundamental reset to focus on oil and gas to improve cash flow and shareholder returns. This reset marks a complete shift away from a ‘greener’ agenda, most likely to be stimulated by political developments in the US. The chief executive, Murray Auchincloss, was re-elected with more than 97% of the vote.
The impact of US policy change
Up until recently the world has prioritised the development of renewable energy in place of fossil fuels. The powerful fossil fuel lobby has been able to stymie fundamental policy change at the COP events. The impact of the election of Donald Trump in the US has been the prioritisation of fossil fuel opportunities over renewables. Nevertheless, this has not prevented the US administration from securing the supply of minerals critical for battery production by deals with the Democratic Republic of the Congo and Ukraine. In return for the supply of minerals, the US has offered its protection.
The wider implication of US policy change has been to shift investment priorities. Once companies who focused on diversity, equality and inclusion were at an advantage in seeking growth funding. Now they are not.
Shareholder vs. consumer power
Shareholders, including those who manage our pensions, seek the best return on investment. Consumers may weigh cost against factors like sustainability and employee well-being. The BP AGM shows that shareholder and consumer values can conflict in balancing long and short-term priorities. Elsewhere consumer power is evident in KFC’s withdrawal from Turkey and Malaysia due to boycotts related to the Gaza conflict.
