Exxon Planning Board, Other Changes Amid Activist Pressure
January 27 2021 - 11:07AM
Dow Jones News
By Cara Lombardo, Emily Glazer and Dana Cimilluca
Exxon Mobil Corp. is preparing to make changes to its board and
adopt further measures to reduce its carbon footprint as the
beleaguered energy giant faces pressure from a pair of activist
investors.
The company is discussing adding one or more new directors to
the board and stepping up sustainability investments, people
familiar with the matter said. Irving, Tex.-based Exxon, which has
been reducing its overall capital spending, could also curtail it
further.
Exxon is in talks with one of the activists, D.E. Shaw Group,
which may end up supporting the moves, some of the people said.
Meanwhile, the other, Engine No. 1 LLC, is moving forward with a
planned proxy fight for four board seats, it said Wednesday.
Exact details couldn't be learned and the talks with D.E. Shaw
could still fall apart. Like other activists, D.E. Shaw sometimes
employs nonbinding handshake agreements with the companies it
targets to avert a proxy fight.
The company said in a statement in response to the Engine No. 1
move that it has engaged with the firm since mid-December and that
its board-affairs committee will evaluate the nominees. "ExxonMobil
will continue to update shareholders in the coming weeks on the
company's strategy to build long-term, sustainable value for
shareholders," the company said. "It will also provide updates on
company performance and actions to address climate change,
including initiatives to commercialize technologies which are key
to reducing emissions and meeting societal goals consistent with
the Paris Agreement."
Exxon could announce the changes as soon as next week, possibly
with its fourth-quarter earnings Tuesday, the people said, though
there is no guarantee it will do so.
The company is expected to report its fourth straight quarterly
loss, the longest such losing streak in its modern history.
Write to Cara Lombardo at cara.lombardo@wsj.com, Emily Glazer at
emily.glazer@wsj.com and Dana Cimilluca at
dana.cimilluca@wsj.com
(END) Dow Jones Newswires
January 27, 2021 10:52 ET (15:52 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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