Exxon’s lawsuit stems in part from a change at the Securities and Exchange Commission to allow more environmental, social and governance motions to proceed to shareholder votes. Photograph: APNorway’s oil fund has become the latest ExxonMobil investor to commit to voting against the re-election of director Jay Hooley as concerns intensify over the impact on shareholder democracy of a lawsuit launched by the US oil group.
Norges Bank Investment Management, a top-10 shareholder, said it would vote against Hooley, Exxon’s lead independent director, at the company’s annual meeting on May 29.
Exxon’s lawsuit stems in part from a change at the Securities and Exchange Commission to allow more environmental, social and governance motions to proceed to shareholder votes. The agency has become less inclined to use its powers to halt shareholder proposals that companies argue are frivolous or micromanage their day-to-day affairs. Exxon argues that the SEC has allowed too many burdensome proposals on to the ballot, leaving it with no option but to turn to the courts.
“This is an unwarranted and cynical attack on shareholder rights in the world’s leading capital market,” he said. A group of US treasurers, comptrollers and pension plan trustees, including New York City comptroller Brad Lander and Washington state treasurer Mike Pellicciotti, sent letters this week to the world’s biggest asset managers including BlackRock, JPMorgan and State Street, calling on them to vote against the re-election of Hooley and Exxon’s chief Darren Woods.
“While shareholder activism can be a force for positive change, it must be geared towards maximising shareholder returns, not destroying the target company for political purposes,” said John Fleming, Louisiana state treasurer.