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.