May 13 (Reuters) - Glass Lewis recommended investors
vote against Exxon's lead independent director Joseph Hooley,
citing concerns about what the proxy adviser called the energy
company's "unusual and aggressive tactics" in pursuing a lawsuit
against activist investors.
In a report sent late on Friday, Glass Lewis also
recommended investors cast votes for Exxon Chairman and CEO
Darren Woods, and backed the company on all other matters up for
a vote at its May 29 shareholder meeting.
Exxon, which is frequently the focus of critical shareholder
resolutions, struck back earlier this year when it filed a
lawsuit seeking to block a vote on a climate proposal submitted
by two small activist investors.
The lawsuit sidestepped the usual regulatory process to fend
off similar measures. The investors withdrew their resolution,
but Exxon continued the lawsuit, seeking legal costs and other
relief.
Activist investors say the lawsuit threatens shareholder
influence, and a campaign for votes against Hooley and Woods has
drawn support from New York state Comptroller Thomas DiNapoli
and from California Treasurer Fiona Ma, a member of the boards
of the state's two big pension funds.
In its report, Glass Lewis acknowledged that Exxon has
gotten many shareholder proposals, but cited how the company has
continued the lawsuit against what it called
"resource-constrained parties."
"The Company's unusual and aggressive tactics in this matter
could threaten to deter both investors' willingness to submit
and ability to vote on materially relevant issues," Glass Lewis
wrote. It opposes Hooley, Glass Lewis said, in order "to
strongly signal dissatisfaction with the Company's recent
approach to omitting shareholder proposals."