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Glass Lewis recommends votes against Exxon director Hooley, citing lawsuit
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Glass Lewis recommends votes against Exxon director Hooley, citing lawsuit
May 13, 2024 8:21 AM

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."

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