By Shadia Nasralla
(Reuters) – BP Chair Helge Lund intends to step down “likely during 2026” and the process to pick his successor has started, BP said on Friday amid a campaign by activist hedge fund Elliott for more change at the company.
Lund had backed BP’s 2020 strategy under former CEO Bernard Looney to move away from oil and gas, including an ambition to cut its hydrocarbon output by 40% this decade. BP’s shares have been underperforming peers such as Shell and Exxon.
Following gradual steps away from that strategy – and Looney’s departure in 2023 after it emerged he had not disclosed relationships with colleagues – new Chief Murray Auchincloss in February announced a renewed focus on oil and gas.
Elliott Management, which has built a near 5% stake in BP according to sources, wants even more change, including a more ambitious asset disposal programme.
Lund stands for re-election at BP’s April 17 annual shareholder meeting, and some shareholders, including more climate-focused ones, have discussed potential leadership changes.
“Now is the right time to start the process to find my successor and enable an orderly and seamless handover,” Lund said in a statement.
The successful candidate will join the board and work with Lund ahead of taking on the role, at which point Lund will step down from the board, most likely in 2026, BP said.
Elliott Management did not immediately respond to a request for comment.
Lund, from Norway, was named chair of the BP board in January 2019. Before that, he was the CEO of BG Group when Shell bought it, following a ten-year stint as CEO of Norway’s Equinor, then Statoil.
He has also held the chairman position at Danish drugmaker Novo Nordisk since 2018.
(Reporting by Shadia Nasralla in London and Chandini Monnappa in Bengaluru; Editing by Janane Venkatraman, Rashmi Aich and Jan Harvey)
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