Exxon (XOM.N) will make an appearance soon; opens new tab He will have the opportunity to highlight the robust investor support he received in spite of a lawsuit that singled out a few shareholders, thanks to Chief Executive Darren Woods, who may also shed some light on the implications of the legal action.
Woods, who is scheduled to speak on September 10 at a corporate governance conference in the Brooklyn borough of New York City, pushed Exxon into a legal assault mode this spring after activist investors submitted a shareholder resolution pertaining to climate change at the company’s annual meeting.
The resolution demanded that Exxon establish goals for reducing emissions, especially those resulting from burning its products.
Even when the measure’s supporters dropped it, Exxon persisted in its legal action, citing concerns about the filers’ motivations and expecting the court would address some of the issues. Even though a federal court dismissed the case in June, the situation highlighted questions regarding shareholder rights.
The Council of Institutional Investors, whose members include some of the activists and pension fund officials most alarmed by Exxon’s environmental record and lawsuit, will now hear Woods’ speech. Many of them told me they would be keeping an eye on Woods’ appearance to see whether the legal process may stifle shareholder involvement.
According to Julie Gorte, senior vice president for sustainable investment at Exxon, “he’s sent a message that Exxon is prepared to react if you file a shareholder resolution on the climate transition.”
In response to a query for comment, an Exxon representative opened a new tab and cited a prior statement from Woods that stated, “Our lawsuit put a spotlight on the widespread abuse of the shareholder proxy submission process” and that the business was eager to interact with all of its investors.
When Woods appears on September 10, he will talk from strength. At the annual general meeting on May 29, despite requests for votes against him and another director, both leaders easily won reelection.
