Until recently, the notion that an activist would approach ExxonMobil seemed far-fetched. Now it faces several.
Scott Olson/Getty ImagesYears ago, the notion of an investor challenging mighty Exxon Mobil was unthinkable—but no longer, as the oil-and-gas giant faces several activists.
Seven years ago, Exxon (ticker: XOM) was a fortress and still the largest company in the world. Today, it’s not even the world’s largest energy company, having lost the top spot to Saudi Aramco (2222. Saudi Arabia). In the U.S., Exxon briefly ceded the top spot to Chevron (CVX) in October.
But even as Exxon’s weighting on the S&P 500 fell in an era of low oil prices and calls for clean energy, the notion of the company being approached by an activist seemed farfetched. But on Monday, recently-launched activist Engine No. 1, acting with the support of the California State Teachers’ Retirement System, said it will nominate four directors to Exxon’s board.
Engine No. 1 later got support from an even higher power, the Church of England, which said “action is urgently needed” to improve the company’s strategy, governance, and climate-control efforts. Separately, hedge fund D.E. Shaw sent a letter to Exxon on issues similar to those raised by Engine No. 1, after taking what Bloomberg described as “a sizable position.”
Exxon said it values the perspectives of shareholders and is investing in “breakthrough technologies” to address climate change.
At first blush, Wall Street wasn’t sure if Engine No. 1 and CalSTRS, with their small stakes, could successfully push for change. But faced with a rising cohort of activists, still-weak energy prices, and a broader conversation about stakeholder capitalism, Exxon may not be able to avoid acting. B
Write to Carleton English at carleton.english@dowjones.com
"gather" - Google News
December 12, 2020 at 05:13AM
https://ift.tt/3gCSWpY
As Activists Gather, Exxon Mobil Faces Pressure to Change - Barron's
"gather" - Google News
https://ift.tt/2Sqdbwp
https://ift.tt/2Yjhqxs
Bagikan Berita Ini
0 Response to "As Activists Gather, Exxon Mobil Faces Pressure to Change - Barron's"
Post a Comment