An activist investor is more likely to choose up a 3rd seat on the board of Exxon Mobil Corp., giving it further leverage to press the oil big to handle investor discontent about diminished earnings and its fossil-fuel centered technique amid considerations about local weather change.
Exxon stated Wednesday that an up to date vote rely confirmed shareholders backed a 3rd nominee of Engine No. 1, an upstart hedge fund that had already gained two board seats at Exxon’s annual shareholder assembly final week. The ultimate vote hasn’t been licensed, Exxon stated, and will take days or perhaps weeks to be finalized, in accordance with folks conversant in the matter.
Engine No. 1, which owns a tiny fraction of Exxon’s inventory, had sought 4 seats on the board and argued the Texas oil big ought to decide to carbon neutrality, successfully bringing its emissions to zero—each from the corporate and its merchandise—by 2050, as some friends have. If the preliminary voting outcomes maintain, it would management 1 / 4 of Exxon’s 12-person board.
The vote culminated some of the costly proxy fights ever. It places new strain on Exxon Chief Govt Darren Woods, who personally campaigned in opposition to Engine No. 1 and will complicate his plans to keep up Exxon as the most important Western oil producer. Mr. Woods was re-elected to the board together with eight of Exxon’s candidates.
“We look ahead to working with all of our administrators to construct on the progress we’ve made to develop long-term shareholder worth and reach a lower-carbon future,” Mr. Woods stated in a press release. “We thank all shareholders for his or her engagement and participation, and their ongoing help for our firm.”
