Exxon Planning Board, Other Changes Amid Activist Pressure

By Cara Lombardo, Emily Glazer and Dana Cimilluca 

Exxon Mobil Corp. is preparing to make changes to its board and adopt further measures to reduce its carbon footprint as the beleaguered energy giant faces pressure from a pair of activist investors.

The company is discussing adding one or more new directors to the board and stepping up sustainability investments, people familiar with the matter said. Irving, Tex.-based Exxon, which has been reducing its overall capital spending, could also curtail it further.

Exxon is in talks with one of the activists, D.E. Shaw Group, which may end up supporting the moves, some of the people said. Meanwhile, the other, Engine No. 1 LLC, is moving forward with a planned proxy fight for four board seats, it said Wednesday.

Exact details couldn't be learned and the talks with D.E. Shaw could still fall apart. Like other activists, D.E. Shaw sometimes employs nonbinding handshake agreements with the companies it targets to avert a proxy fight.

The company said in a statement in response to the Engine No. 1 move that it has engaged with the firm since mid-December and that its board-affairs committee will evaluate the nominees. "ExxonMobil will continue to update shareholders in the coming weeks on the company's strategy to build long-term, sustainable value for shareholders," the company said. "It will also provide updates on company performance and actions to address climate change, including initiatives to commercialize technologies which are key to reducing emissions and meeting societal goals consistent with the Paris Agreement."

Exxon could announce the changes as soon as next week, possibly with its fourth-quarter earnings Tuesday, the people said, though there is no guarantee it will do so.

The company is expected to report its fourth straight quarterly loss, the longest such losing streak in its modern history.

Write to Cara Lombardo at [e-mail], Emily Glazer at [e-mail] and Dana Cimilluca at [e-mail]

(END) Dow Jones Newswires

January 27, 2021 10:52 ET (15:52 GMT)

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