Exclusive: BP Tightens Workplace Relationships Policy Following Looney Dismissal – Reuters

By Sarah McFarlane, Ron Bousso, and Dmitry Zhdannikov

LONDON – BP has updated its policies regarding conflicts of interest, mandating that employees disclose any intimate relationships with colleagues or face the possibility of job termination. This policy change follows the dismissal of former CEO Bernard Looney, who was let go for failing to disclose such relationships.

The revised conflicts of interest policy, communicated to employees via email last week, indicates that Looney’s abrupt exit last September continues to have significant implications for the organization. The new guidelines prohibit employees from managing relatives or those with whom they are in an intimate relationship, either directly or indirectly.

BP has stated that disciplinary measures, including potential dismissal, will be enforced for anyone who does not comply with the updated requirements. In addition, thousands of senior leaders are now required to declare any intimate relationships with employees or agency workers that occurred in the last three years. They have been granted a three-month grace period, which will end on September 1, to fulfill these declarations.

The company has acknowledged the policy revision regarding potential conflicts of interest stemming from personal relationships in the workplace. Previously, employees were expected to disclose and document such relationships if they believed they might create a conflict. The updated requirement now mandates disclosure regardless of perceived conflict.

Earlier this year, BP completed an investigation into Looney’s conduct with assistance from a law firm, but the findings have not been publicly released. The board is carefully considering the details of the case and is focused on implementing the lessons learned.

Looney was dismissed in December, and BP has recouped up to $40 million of his compensation, indicating he misled the board by not revealing previous relationships. His departure followed an investigation launched in May 2022 over similar allegations, during which he provided assurances about his past and future behavior.

Since Looney’s exit, BP’s share price has dropped by over 11%, underperforming its peers amid concerns about the company’s strategy for energy transition. The new CEO, Murray Auchincloss, who took the helm in January, is working to stabilize the company and has promised to enhance returns.

Auchincloss has already disclosed that his partner is also an employee at BP, and he had made this relationship known prior to his appointment as chief financial officer in 2020.