Activist investor urges Exxon shareholders to vote against four directors

(Reuters) – The activist investor leading a proxy fight to reshape Exxon Mobil Corp on Monday named the four directors it wants shareholders to remove at the oil company’s upcoming annual general meeting.

The investor, Engine No. 1, is a small fund that last year took on the top U.S. oil producer for what it said was poor financial returns and a lagging approach to cleaner fuels. Exxon since has vowed to cut its debt, invest more in low-carbon initiatives, and improve returns.

The fund singled out for removal three former chief executives of U.S. companies and the former head of Malaysia’s state-run oil firm who joined the board last month.

Exxon has named three new directors since February.

A spokesman for the oil firm did not immediately reply to a request for comment.

Engine No. 1, which counts pension fund California State Teachers’ Retirement System (CalSTRS),among its supporters, asked shareholders to vote against the re-election of former MetLife CEO Steven Kandarian, former Caterpillar CEO Douglas Oberhelman, former IBM CEO Samuel Palmisano, and former Petronas CEO Wan Zulkiflee.

The three U.S. executives “have destroyed shareholder value and generated significant long-term risk for investors,” Engine No. 1 said in a statement. Wan Zulkiflee, who joined the Exxon board last month after Engine No. 1 launched its campaign, “is not as relevant for a public company in need of transformative and successful energy experience,” the fund said.

The activist fund’s nominees include Gregory Goff and Anders Runevad, former chief executives of oil refiner Andeavor and wind-turbine manufacturer Vestas Wind Systems, respectively; Kaisa Hietala, former head of renewable fuels at refiner Neste; and former U.S. Assistant Secretary of Energy for efficiency and renewable energy, Alexander Karsner.

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