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US state officials urge votes against directors as Exxon sues climate activists
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US state officials urge votes against directors as Exxon sues climate activists
May 21, 2024 9:52 AM

May 21 (Reuters) -

A group of state financial officers and other public and

labor leaders called on Tuesday for major asset managers to vote

against top Exxon directors, citing the U.S. oil

company's ongoing lawsuit against climate activists.

The group including New York City Comptroller Brad Lander

and the state treasurers of Connecticut, Nevada and other states

called for votes against Exxon CEO and chair Darren Woods and

the company's lead independent director Joseph Hooley, saying in

a statement Exxon's suit would "undermine shareholder rights."

The group named BlackRock ( BLK ), JPMorgan ( JPM ) and

Goldman Sachs ( GS ) among the managers whose support it sought.

A JPMorgan ( JPM ) representative said the firm would not comment on

individual votes. A Goldman Sachs ( GS ) representative declined to

comment. BlackRock ( BLK ) did not immediately comment.

Exxon's May 29 annual meeting is shaping up as a test of

how much support small investors can expect from top asset

managers. While Wall Street firms have touted their investments

in corporate stewardship to guide votes on executive pay or

shareholder resolutions, the firms almost never submit

resolutions themselves.

Big asset managers also have taken increasing criticism

from both liberal and conservative groups over the proxy votes

they cast.

Other state financial leaders, including New York State

Comptroller Thomas DiNapoli, have previously said they would

vote public pension assets against Exxon directors because of

the lawsuit. While the state systems are not among the largest

Exxon shareholders, they have played an influential role in

previous company director elections.

Exxon, which is frequently the focus of critical shareholder

resolutions, had sued to block a vote on a climate proposal,

sidestepping the usual regulatory process. Although the

investors withdrew their resolution, Exxon continued the

lawsuit, seeking legal costs and other relief.

The unusual lawsuit has prompted concerns from investor

groups and proxy advisers, though it is not clear if top

shareholders will join earlier calls from religiously-affiliated

investors to vote against Woods and Hooley.

Tuesday's statement was sent by a representative for

California Treasurer Fiona Ma, a board member of the California

Public Employees' Retirement System. On Monday the system

declared its intention to vote against all Exxon's board

nominees over the lawsuit.

Asked about the statement, an Exxon representative

reiterated the company's position that it only wants "to get

clarity on the rules to foster an environment for open and

meaningful shareholder dialogue."

The representative said the board has overseen

significant value creation.

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