Unrest over BP's choice of chairman

By LAUREN MILLS, MAIL ON SUNDAY SENIOR FINANCIAL CORRESPONDENT
Updated:

Questions are being asked as to who is the best successor to BP chief Peter Sutherland

Questions are being asked as to who is the best successor to BP chief Peter Sutherland

Record results from BP this week - smashing the £18billion profits barrier - are expected to be tarnished by a last-minute hitch in the long-running search for a new chairman.

Paul Skinner, outgoing chairman of mining group Rio Tinto, was expected to succeed Peter Sutherland, who has now agreed to remain at BP until the autumn.

This has fuelled speculation that one of the other two male candidates on the short list might be appointed as Sutherland could hold the fort until the chosen candidate had served out his notice.

Skinner could have taken over immediately as he leaves Rio in April.

There is growing uncertainty among the oil giant's non-executive directors and major shareholders over whether Skinner is the right man. Questions are being asked about his decision to turn down rival BHP Billiton's £43billion takeover offer a year ago.

Critics also point to Rio's £28billion purchase of aluminium producer Alcan in 2007, a move that saddled Rio with enormous debts.

A BP shareholder said: 'The Alcan acquisition was not as well-timed as it could have been and fewer assets have been sold on Skinner's watch than we would have liked.'

Another said: 'Clearly the Rio saga does not reflect well on any party and there are things of concern - but there would be with most people.'

BP's deputy chairman, Sir Ian Prosser, is running the succession process with the help of top City headhunter Anna Mann. Sources say he has been asked by other non-executive members of the board to apply extra rigour to the final stages.

One person close to the situation said: 'Some unrest or concern is to be expected, but it does not mean Skinner is no longer in the running.'

Skinner, together with other candidates on the short list, is likely to be subjected to another round of interviews as the hunt for a new boss drags on.

'There will be checks and double-checks,' said a source.

Sutherland announced at BP's 2008 AGM that he intended to step down as chairman.

A spokesman for BP said: 'We are in the final stages of making a decision, which is expected well in time for the April AGM.' 

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