Activist hedge fund firm Engine No. 1 GP LLC (Engine No. 1 LLC) showcased four independent director candidates for the board of Exxon Mobil Corporation. The California Public Employees’ Retirement System (CalPERS), California State Teachers’ Retirement System (CalSTRS), and New York State Common Retirement Fund backed the Engine No. 1 candidates. Exxon Mobil shareholders voted […]
The successful board challenge against Exxon Mobil Corp (XOM.N) casts a spotlight on two recently launched sustainability-focused investment firms that took opposite sides in the high-stakes battle: Engine No. 1 and Inclusive Capital Partners.
Engine No. 1 convinced other shareholders to support at least two of its nominees to join the company's board as part of its push for a stronger sustainability strategy at Exxon.
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Darren Woods, Exxon Mobil’s C.E.O., suffered a big defeat in his fight with an activist investor.Credit.Brendan McDermid/Reuters
The little Engine …
Exxon Mobil suffered a stunning loss at its annual shareholder meeting yesterday, as a small new activist investor focused on climate change, Engine No. 1, won at least two seats on its 12-member board. To corporate America, the upset was a clear sign that company boards and leaders need to pay attention to environmental, social and governance issues (known as E.S.G.) or suffer rebukes.
A big splash for a tiny fund. Exxon was the first activist campaign for Engine No. 1, which was founded last year by the energy and tech investor Chris James. Its head of active engagement is Charlie Penner, a veteran hedge fund executive who helped lead campaigns against companies like Apple while at Jana Partners.
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HOUSTON/BOSTON Last December, when a week-old hedge fund named Engine No. 1 challenged Exxon Mobil to change its ways, laughter echoed through Wall Street circles, from the fund’s name that recalled a famous children’s book to its tiny, then-$40 million stake in what was once the world’s largest publicly traded company.
Just six months later, the fund delivered a massive blow that rippled throughout the oil-and-gas industry. Engine No. 1’s campaign forced Exxon to accept new board members who could bring about a reckoning over its business strategy and confront the risk of global climate change that many investors say Exxon has long been reluctant to address.