BP has officially handed the role of chief executive to interim appointee Murray Auchincloss, ending months of searching and speculation.
Formerly BP’s (LON:BP) finance chief, Mr Auchincloss stepped up to the interim CEO role in September following the sudden resignation of Bernard Looney amid the disclosure of historic relationships with colleagues.
BP confirmed his appointment on Wednesday, noting that it had been made following a “robust and competitive search process” spanning both internal and external candidates.
The search process for the new CEO was led by a committee of the BP board, headed by Helge Lund and three other non-executive directors, it said in a statement.
The energy giant has typically opted for long-serving company insiders to take on the position.
In December Reuters reported that Carol Howle, the company’s head of trading and shipping, and Emma Delaney, head of customers and products, were in the running.
A string of other internal BP candidates had been previously tipped for the role, including the group’s Norwegian chairman Helge Lund, executive vice president William Lin and the leader of the company’s gas and low-carbon business Anja-Isabel Dotzenrath.
However, Mr Auchincloss was viewed by some analysts as “the most logical successor”.
BP chairman Helge Lund said: ”Since September, BP’s board has undertaken a thorough and highly competitive process to identify BP’s next CEO, considering a number of high-calibre candidates in detail.
“The board is in complete agreement that Murray was the outstanding candidate and is the right leader for BP.
“Many already know Murray well, and few know BP better than he does. His assured leadership, focus on performance and delivery, and deep understanding of the opportunities and challenges in the energy transition will serve BP well as we continue our disciplined transformation to an integrated energy company.”
BP confirmed he will receive an annual salary of £1.45 million, alongside potential bonuses, bonus deferrals and performance shares in accordance with BP’s remuneration policy.
Mr Auchincloss said: “It’s an honour to lead BP – this is a great company with great people. Our strategy – from international oil company to integrated energy company, or IOC to IEC – does not change. I’m convinced about the significant value we can create.
“Now, more than ever, our focus must remain on delivery – operating safely and efficiently, executing with discipline, and always focusing on returns. This is how we will deliver real benefits for our customers and other stakeholders and continue to grow long-term value for BP’s shareholders.”
Who is Murray Auchincloss?
The 53-year-old had been BP’s chief financial officer since July 2020, at which time he also joined the group’s board. He had previously served as CFO, deputy CFO and head of business development for its upstream business, and from 2010-2013 served as head of the chief executive’s office, working directly with Bob Dudley.
Other positions included financial and planning roles in Canada and the US, and stints as commercial director for BP’s Onshore North America business and CFO for its North Sea business.
He has a degree in finance from the University of Calgary and is a Chartered Financial Analyst and is also a member of the Aker BP board.
Share price challenge
The company will now hope to draw a line under the controversy surrounding Mr Looney’s departure as it heads into annual results reporting next month.
Yet Mr Auchincloss now faces the challenge of shaping up the supermajor’s performance. Analysts at RBC last year noted that BP’s share price has lagged peers this year following “two disappointing sets of results” and Mr Looney’s resignation, all of which undermined investor confidence.
As a result, RBC argues that the BP’s current share price “undervalues the business” – a long-running theme as UK and European-headquartered oil giants continue to trade at significant discounts to their US rivals.
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