By Sheila Dang HOUSTON, May 13 (Reuters) – Proxy advisory firms Glass Lewis and Institutional Shareholder Services have recommended that Exxon Mobil and Chevron investors vote against some of the boards’ stances on shareholder proposals, including against Exxon’s plan to redomicile in Texas. Both U.S. oil producers have long been the subject of critical shareholder […]
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Exxon, Chevron face dissent from proxy firms ahead of annual meetings
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By Sheila Dang
HOUSTON, May 13 (Reuters) – Proxy advisory firms Glass Lewis and Institutional Shareholder Services have recommended that Exxon Mobil and Chevron investors vote against some of the boards’ stances on shareholder proposals, including against Exxon’s plan to redomicile in Texas.
Both U.S. oil producers have long been the subject of critical shareholder proposals urging the companies to evaluate climate and human rights risks, and recommendations from proxy advisers are closely watched. The companies will hold their annual shareholder meetings on May 27.
Here are more details about the recommendations:
• Exxon investors should vote against the company’s proposal to change its incorporation from New Jersey to Texas because the move could restrict stockholder rights and make it more difficult to seek legal recourse, Glass Lewis and ISS said in reports this month.
• ISS also advised approving a proposal that Exxon add more options to its retail voting program, including an option for retail investors to automatically vote against the board’s recommendations.
• In a filing on Tuesday, Exxon hit back against the New York City Comptroller’s Office, which brought the voting proposal, saying that its criticism of the company was politically motivated.
• Exxon also said Glass Lewis was “ill-informed” in its recommendation against the Texas move.
• Glass Lewis said Chevron shareholders should not reelect former Utah Governor Jon Huntsman Jr. to the board, given that he holds an executive role at Mastercard and also serves on Ford Motor’s board, which could affect his time commitment to Chevron.
• Chevron investors should support a proposal for an independent board chair separate from the CEO role because it leads to a more proactive and effective board, Glass Lewis said.
• Chevron said in its proxy filing that the board should have the flexibility to choose its leadership structure.
(Reporting by Sheila Dang in Houston; Editing by Rod Nickel)