Engine No. 1’s stake in Exxon - an energy behemoth with a market value of close to $US250 billion ($323 billion) - is worth just $US50 million. The development came as climate activists scored a big legal win against Royal Dutch Shell,which was ordered by a Dutch court on Wednesday (US time) to increase its greenhouse gas emission cuts.
The result will add to pressure facing Exxon CEO Darren Woods,who campaigned to convince shareholders to shoot downthe board challenge,arguing the company was already diversifying away from fossil fuels and should not jeopardise its profits in doing so.
The counting is not finished,so Engine No. 1 could potentially see three of its four nominees join the Exxon board. That left the re-election of directors Steven Kandarian,Douglas Oberhelman,Samuel Palmisano and Wan Zulkiflee up in the air. Alexander Karsner,one of Engine No. 1’s nominees,was still in the running,Exxon said.
Under Woods,Exxon incurred a $US20 billion-plus loss last year and has been slower to embrace lower-carbon investments than its global rivals.
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“We welcome the new directors,Gregory Goff and Kaisa Hietala,to the board and look forward to working with them constructively and collectively on behalf of all shareholders,” Woods said at the end of Exxon’s shareholder meeting.
The dissident shareholder group led by Engine No. 1 put up a slate of four nominees to the 12-member Exxon board of directors in the first big boardroom contest at an oil major that makes climate change the central issue.