Workers carry an Exxon Mobil Corp. sign during the 2024 CERAWeek by S&P Global conference in Houston on March 21xxonMobil's multi-front tussle with investors over the company's positioning on climate change escalated last week when CalPERS, the largest U.S. pension fund, announced it would vote against every member of the company's board of directors at its annual meeting on May 29.
Anyone who reads the newspaper’s business pages will know that battles between investors and corporate leadership are nothing new. Investors often seek to shake up management in pursuit of strategies they believe will deliver better returns. Indeed, finding ways to achieve higher returns is the legal obligation—known as the fiduciary duty—of both corporate executives and investment managers.
Arjuna and Follow This are relatively small players, but the litigation has riled a broader group of investors with much deeper pockets. The New York State Common Retirement Fund, which manages around $250 billion in assets, said it would vote against 10 out of 12 Exxon board members citing the company’s climate positioning. On Monday, CalPERS, which has a $1 billion stake in Exxon, said it would vote against the entire Exxon board in response to the company’s litigation against investors.