Shareholder engagement
Shareholder engagement strategy focuses on wide-ranging dialogue between shareholders and management.
The companys senior management regularly meet with institutional investors and shareholders through industry conferences, roadshows and company hosted investor
events. Materials from these conferences and hosted events are available on our website. For shareholders that are not able to attend our annual meeting in person, the company offers a webcast of the event. The webcast is available on the
company website along with speeches and presentations from the annual general meeting and the outcome of the voting on each resolution. In July of 2018, the company began hosting quarterly earnings calls. These calls provide an opportunity for
the company to provide more insight and context regarding the companys performance, as well as directly address questions from the investment community.
The
company annually solicits questions and comments from registered shareholders on the proxy form. The comments received are reviewed by senior management providing them with an indication of areas of interest to our shareholders and those requiring a
response are answered individually. In addition, the companys Investor Relations team proactively reaches out to shareholders to obtain their views on matters identified broadly by shareholders, and is available to respond to shareholder and
investor queries throughout the year.
Largest shareholder
Exxon Mobil Corporation is the majority shareholder of the company, holding 69.6% of the companys shares.
To the knowledge of the directors and executive officers of the company, the only shareholder who, as of February 13, 2019, owned beneficially, or exercised
control or direction over, directly or indirectly, more than 10 percent of the outstanding common shares of the company is Exxon Mobil Corporation, 5959 Las Colinas Boulevard, Irving, Texas 75039-2298, which owns beneficially 541,192,585 common
shares, representing approximately 69.6 percent of the outstanding voting shares of the company. As a consequence, the company is a controlled company for purposes of the listing standards of the NYSE American LLC and a
majority controlled company for purposes of the TSX Company Manual.
Transactions with Exxon Mobil
Corporation
The company has written procedures that provide that any transactions between the company and ExxonMobil and its subsidiaries are subject to
review by the chairman, president, and chief executive officer. The board of directors receive an annual review of related party transactions with ExxonMobil and its subsidiaries.
On June 27, 2017, the company implemented a
12-month
normal course share purchase program, and on
April 27, 2018, the company amended the program to increase the number of common shares that may be purchased from up to three percent to up to five percent. Between June 27, 2017 and June 26, 2018, the company purchased 12,511,472
common shares on the open market and a corresponding 28,640,587 common shares from ExxonMobil concurrent with, but outside of the program to maintain its shareholding at approximately 69.6 percent. On June 27, 2018, a further
12-month
normal course share purchase program was implemented. Under the current program, the company may purchase up to 40,391,196 common shares (five percent of its outstanding common shares as of
June 13, 2018) from the open market, less the amount purchased from ExxonMobil concurrent with, but outside of the program to maintain its ownership percentage at approximately 69.6 percent. As of February 13, 2019, under the
current program, the company has purchased 7,780,387 common shares on the open market and 17,808,069 common shares from ExxonMobil.
The amounts of purchases and
sales by the company and its subsidiaries for other transactions in 2018 with ExxonMobil and its affiliates were $4,036 million and $6,364 million, respectively. These transactions were conducted on terms as favourable as they would have
been with unrelated parties, and primarily consisted of the purchase and sale of crude oil, natural gas, petroleum and chemical products, as well as technical, engineering and research and development services. Transactions with
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