Activist Investor Seeks to Remove Ex-CEOs of IBM, Petronas, Caterpillar, MetLife from ExxonMobil Board

Shariq Khan and Gary McWilliams
Tuesday, March 16, 2021

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 prominent U.S. companies and the former head of Malaysia's state-run oil firm who joined the board last month. Its nominees for the board include a former U.S. Energy Department official and an executive at a wind turbine developer-manufacturer.

Exxon has named three new directors since February, including Wan Zulkiflee Wan Ariffin, the former CEO of Malaysia's Petronas.

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 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 was appointed to Exxon's 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. A spokesperson declined comment beyond its statement.

"We categorically disagree with Engine No. 1’s assertions about our board, including the directors they have targeted," said Exxon spokesman Casey Norton. A board committee considered Engine No. 1's candidates and ruled them out, his statement added.

Exxon directors "have experience leading some of the world’s largest, most complex and successful companies and bring to the board a wide range of backgrounds, knowledge and skills relevant to the company’s business and future direction – unlike the Engine No. 1 candidates."

The activist fund 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 Finish refiner Neste; and former U.S. Assistant Secretary of Energy for efficiency and renewable energy, Alexander Karsner. 

(Reporting by Shariq Khan in Bengaluru and Gary McWilliams in Houston; Editing by Krishna Chandra Eluri, Bernadette Baum and David Gregorio)

Categories: People & Company News Energy People Activity

Related Stories

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Wood JV Gets EPC Job for Shell off Brunei

CNOOC Starts Production at Offshore Field in South China Sea

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

EnerMech Names APAC Regional Chief

Current News

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com