By Ross Kerber
(Reuters) -A gaggle of state monetary officers and different public and labor leaders referred to as on Tuesday for main asset managers to vote towards high Exxon (NYSE:) administrators, citing the U.S. oil firm’s ongoing lawsuit towards local weather activists.
The group together with New York Metropolis Comptroller Brad Lander and the state treasurers of Connecticut, Nevada and different states referred to as for votes towards Exxon CEO and chair Darren Woods and the corporate’s lead unbiased director Joseph Hooley, saying in a press release Exxon’s swimsuit would “undermine shareholder rights.”
The group named BlackRock (NYSE:), JPMorgan and Goldman Sachs among the many managers whose help it sought. A JPMorgan consultant stated the agency wouldn’t touch upon particular person votes. A Goldman Sachs consultant declined to remark. BlackRock didn’t instantly remark.
Exxon’s Might 29 annual assembly is shaping up as a check of how a lot help small buyers can anticipate from high asset managers. Whereas Wall Road corporations have touted their investments in company stewardship to information votes on government pay or shareholder resolutions, the corporations virtually by no means submit resolutions themselves.
Large asset managers even have taken rising criticism from each liberal and conservative teams over the proxy votes they forged.
Different state monetary leaders, together with New York State Comptroller Thomas DiNapoli, have beforehand stated they might vote public pension belongings towards Exxon administrators due to the lawsuit. Whereas the state methods will not be among the many largest Exxon shareholders, they’ve performed an influential position in earlier firm director elections.
Exxon, which is regularly the main target of essential shareholder resolutions, had sued to dam a vote on a local weather proposal, sidestepping the same old regulatory course of. Though the buyers withdrew their decision, Exxon continued the lawsuit, in search of authorized prices and different reduction.
The weird lawsuit has prompted issues from investor teams and proxy advisers, although it isn’t clear if high shareholders will be a part of earlier calls from religiously-affiliated buyers to vote towards Woods and Hooley.
Tuesday’s assertion was despatched by a consultant for California Treasurer Fiona Ma, a board member of the California Public Staff’ Retirement System. On Monday the system declared its intention to vote towards all Exxon’s board nominees over the lawsuit.
Requested concerning the assertion, an Exxon consultant reiterated the corporate’s place that it solely needs “to get readability on the foundations to foster an surroundings for open and significant shareholder dialogue.”
The consultant stated the board has overseen important worth creation.
