NEW YORK (Reuters) -Nineteen Republican U.S. states officials urged money managers not to oppose ExxonMobil’s directors. Shareholders plan to voice opposition to a lawsuit against climate activists.
The group, including Florida Chief Financial Officer Jimmy Patronis and Louisiana State Treasurer John Fleming, said in a letter to companies including BlackRock, Goldman Sachs and JPMorgan that Exxon’s board “deserve our thanks and support… for seeking to rein in activist shareholders”.
Exxon’s case against Arjuna Capital and Follow This divides shareholders and state officials’ opinions. It centers on a climate proposal withdrawal.
A group of Democratic officials asked some of the same asset managers to vote against the board earlier this week, saying the suit would undermine shareholder rights. Norway’s $1.6 trillion sovereign wealth fund said on Friday it would vote against the reappointment of Exxon director Joseph Hooley.
Not all signatories to Thursday’s letter have direct control over voting at companies where state pensions are invested, but their taking a position marks a change from a previous shareholder battle at Exxon, in which Democratic state pension funds sided with a climate-focused hedge fund.
They did not explicitly call for a vote in favour of the board at the May 29 meeting.
“These activists have been flooding corporate proxy statements with politically motivated proposals thinly veiled as business risk mitigation measures,” the letter said.
Republican states support Exxon’s position, emphasizing the importance of energy independence and economic growth. Additionally, their advocacy highlights concerns over excessive shareholder influence in corporate decision-making. Furthermore, the involvement of Republican states signals a broader political dimension to the dispute.
Republican states support their commitment to safeguarding vital industries. They align with Exxon to uphold free market principles and minimal government intervention. Their stance reflects ideological divisions on climate change and corporate governance.
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