In another article I sent to the Digest last night there was discussion on 3 important occurrences in the oil industry in 1 day and this was the biggest. Thank you Joey for sending this to me.
Yes, there was a revolt at Exxon-Mobil as a segment with 0.02% of the shares forced the company to place 2 activists on their Board.
Exxon Mobil Corp. shareholders installed two new members to the oil giant’s board on Wednesday, a dramatic move led by activist investors that could force the company to better address climate change and ultimately transition away from fossil fuels. The move is a remarkable blow to Exxon’s leadership, which had until Wednesday largely selected its own directors for the company’s 12-member board. The new board members were pushed by a small, activist hedge fund, Engine No. 1, that garnered the support of some of Exxon’s biggest investors in calling for U.S. energy companies to shift their business models as climate change intensifies. Shareholders voted to install Gregory Goff and Kaisa Hietala, who both have experience in the energy industry, to the company’s board. Votes had not yet determined one other Engine No. 1 board candidate pushed by the activist firm, and eight of Exxon’s choices won seats, according to preliminary results.
huffpost.com
The voting tallies were still being counted Wednesday night as there was a third candidate Engine 1 submitted and there was no word on this fate of this nomination.
The New York Times notes that Engine No. 1 owns less than 1% of Exxon’s stock but began its push for new board members in December, the latest initiative by activists to force oil companies to address climate change linked to the burning of fossil fuels. The publication added that the European energy companies have spent the last decade beginning to invest in renewable energy sources, but U.S. companies have so far resisted such changes, calling them unsustainable and bad for business.The New York Times notes that Engine No. 1 owns less than 1% of Exxon’s stock but began its push for new board members in December, the latest initiative by activists to force oil companies to address climate change linked to the burning of fossil fuels. The publication added that the European energy companies have spent the last decade beginning to invest in renewable energy sources, but U.S. companies have so far resisted such changes, calling them unsustainable and bad for business.
This stance by Exxon-Mobil has not been liked by both investors and the environmental community. With other changes in the oil industry in place and coming, the acceptance of renewables as part of an oil companies plans seems to be growing.
