Activist investors taking aim at XOM:
https://www.wsj.com/articles/exxon-under-pressure-from-new-activist-fund-11607310000?mod=mhp
Excerpts from the article:
Quote:
Engine No. 1 LLC, an investment firm launched by Chris James last week, is preparing to send a letter to Exxon's board urging the Irving, Texas-based company to focus more on investments in clean energy while cutting costs elsewhere to preserve its dividend. The letter, a copy of which was viewed by The Wall Street Journal, identifies four people the firm plans to nominate to Exxon's 10-person board.
Engine No. 1's letter calls on Exxon to make four primary changes: 1) add independent directors with diversified energy-industry experience; 2) reduce capital expenditures, particularly on projects that are unlikely to break even with sustained low oil and gas prices; 3) formulate a plan to invest in growth areas such as renewable energy; and 4) realign management incentives.
The window to officially nominate directors to Exxon's board doesn't open until later this month, and Engine No. 1 says in the letter it hopes Exxon will consider its nominees before that: Gregory Goff, the former CEO of refiner Andeavor, which was sold to Marathon Petroleum Corp. ; Kaisa Hietala, who previously led the renewables business of Finnish refiner Neste Oyj ; Alexander Karsner, an executive of Alphabet Inc.'s innovation lab who served in the Energy Department under President George W. Bush; and Anders Runevad, former CEO of Vestas Wind Systems AS.