The initial counts show the newest nominee from Engine No. 1’s slate elected to Exxon’s 12-member board is private-equity investor
The outcome is a coup for Engine No. 1, a new and previously unproven player in the realm of activist investing, which, despite holding a miniscule stake in Exxon, eventually amassed broad support from major institutional holders following a six-month proxy fight.
Karsner joins
Furthermore, shareholders went against Exxon and supported the disclosure of political- and climate-lobbying activities. While the votes on those two proposals are non-binding, they represent another remarkable reversal for Exxon, which has previously faced down most investor motions seeking environmental and corporate-governance changes.
The Western world’s biggest oil company managed to place nine of its nominees onto the board.Chairman and Chief Executive Officer
A third seat for Engine No. 1 caps a months-long proxy fight and provides a coda to last week’s dramatic meeting, which at one point was halted so that the company could have more time to count the votes.
The shift in Exxon’s boardroom may present a crippling blow to the future leadership of Woods, according to Ceres, a coalition of environmentally active investors managing $37 trillion. Woods told shareholders earlier last month that voting for the dissident directors would “derail our progress and jeopardize your dividend.”
On the proposal to report on Exxon’s climate lobbying efforts, almost two-thirds of votes cast were in favor of the measure.
Investor dissatisfaction with Exxon has largely centered on two issues that are becoming more interlinked: climate change and financial performance. The oil titan envisages a profitable, long-term future for fossil fuels, and sees no point in investing in traditional renewable energy businesses. It also refuses to commit to targets to zero out emissions, unlike European rivals.
In some respects Exxon is in a better position than at the start of the year. Its
The three Engine No. 1’s nominees join nine members from the company’s slate, including
(Updates with defeat for Wan Zulkiflee in fourth paragraph.)
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