Rockefellers gain more fuel for Exxon change
Written on May 15, 2008
Rockefeller family members and other shareholders pushing to split the top two leadership roles at Exxon Mobil Corp., the world’s biggest publicly traded oil company, gained another ally Tuesday when a proxy advisory firm came out in support of the effort.
The latest recommendation, from Glass, Lewis & Co., adds further fuel to an initiative to separate the roles currently held by Exxon Mobil Chairman and Chief Executive Rex Tillerson. Glass Lewis offers shareholder recommendations to mutual funds and other large investors.
Glass Lewis said that separating the roles of officers and chairman "is almost always a positive change." In the case of Exxon Mobil, an independent chairman would be better able to oversee the company’s executives and "set a pro-shareholder agenda without the management conflicts that a CEO or other executive insiders often face," the firm said.
The separation effort is being led by longtime shareholder activist Robert A.G. Monks. He called Glass Lewis’ support "very encouraging."
Board opposition: Exxon Mobil’s board opposes splitting the roles, one of several issues vying for shareholder support ahead of the Irving, Texas, oil giant’s annual meeting May 28. In a recent proxy statement, the board said it believes the most effective leadership structure is for Tillerson to remain both chairman and CEO.
"The board’s position on this resolution is clear and articulated to shareholders," Exxon Mobil spokesman Alan Jeffers said when asked about Glass Lewis’ support.
Members of the Rockefeller family, whose forebear John D bad credit payday loans faxless payday loans. Rockefeller founded the company that would evolve into Exxon Mobil, gave a boost to the effort at a carefully orchestrated media event last month. Family members pushing for change argue that Exxon Mobil is too focused on short-term gains, and that separating the leadership roles will better position the company to face future challenges.
Existing support: Another investor advisory firm, RiskMetrics Group (RMG), offered its support on Friday. Monks was the founder of Institutional Shareholder Services, which he sold to RiskMetrics last year and said he is no longer involved with.
While heartened by the public support for his proposal, Monks acknowledged that the increased spotlight could prompt Exxon Mobil to work harder to defeat the effort.
"Now that we’re sort of out front, I think we’ve woken up the tiger," he said.
Exxon Mobil’s (XOM, Fortune 500) shares rose 61 cents to $89.80 in afternoon trading.
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