Exclusive-BP toughens workplace relationship policy after Looney’s dismissal

By Sarah McFarlane, Ron Bousso and Dmitry Zhdannikov

LONDON (Reuters) – BP employees must disclose any intimate relationships with colleagues or risk losing their jobs, the oil company told employees in a policy update, following the dismissal of former CEO Bernard Looney for failing to do so. .

The updated conflict of interest policy, which was communicated to employees via email last week and seen by Reuters, highlights how Looney’s sudden departure last September continues to reverberate across the company.

The updated policy “prohibits employees from directly or indirectly managing family members or people with whom they have an intimate relationship,” according to the memo.

The London-listed company said employees will face disciplinary action, including possible dismissal, for failing to meet the new requirements.

In addition to the updated policy, which is part of BP’s code of conduct, thousands of senior leaders are required to disclose any intimate relationships with employees or temporary workers that have occurred in the last 3 years. Managers had a grace period of three months, until September 1st, to make such declarations.

BP confirmed the updated policy regarding conflicts of interest arising from family and intimate relationships at work.

“Previously, employees were required to disclose and record such relationships if they felt there might be a conflict of interest,” the company said in an emailed statement. “They are now required to disclose intimate relationships at work, regardless of whether or not they feel they pose a conflict of interest.”

BP completed its investigation into Looney’s conduct with the help of law firm Freshfields earlier this year and has not released its findings or conclusions, two sources familiar with the matter told Reuters.

“The board has reviewed the details and is ensuring that the themes and lessons are taken into consideration and adopted appropriately,” BP said in the emailed statement.

BP’s board fired Looney last December and clawed back up to $40 million of his compensation. The company said Looney knowingly misled the board by failing to disclose past relationships.

Looney’s departure came after the board investigated similar allegations against him in May 2022, after which Looney gave assurances to the board about his past and future conduct.

BP shares have fallen more than 11% since Looney’s departure, underperforming rivals amid continued investor concerns about the company’s energy transition strategy. Its new CEO, Murray Auchincloss, who took office in January, sought to stabilize the situation by promising to increase returns.

The story continues

Auchincloss’ partner is also a BP employee, a relationship he disclosed before becoming chief financial officer in 2020.

($1 = 0.7859 pounds)

(Reporting by Ron Bousso; Editing by Emelia Sithole-Matarise)