Exxon and Chevron Face Opposition from Institutional Investors Ahead of Annual Shareholder Meetings

Proxy Advisers Recommend Votes Against Exxon and Chevron Board Stances

HOUSTON, May 13 (Reuters) - Proxy advisory firms Glass Lewis and Institutional Shareholder Services have made recommendations for Exxon Mobil and Chevron investors ahead of the companies' annual shareholder meetings on May 27.

The recommendations from Glass Lewis and ISS are significant, as the U.S. oil producers have long been subject to critical shareholder proposals urging the companies to evaluate climate and human rights risks. According to the reports from Glass Lewis and ISS, Exxon investors should vote against the company's proposal to change its incorporation from New Jersey to Texas. This move, the firms warn, could restrict stockholder rights and make it more difficult to seek legal recourse.

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In response to the recommendations, Exxon has fired back against the New York City Comptroller's Office, which brought a voting proposal, saying that its criticism of the company was politically motivated. Exxon also disputed Glass Lewis's recommendation against the Texas move, calling it "ill-informed."

Glass Lewis also made a recommendation against Chevron shareholders reelecting former Utah Governor Jon Huntsman Jr. to the board, citing his executive role at Mastercard and his service on Ford Motor's board, which could affect his time commitment to Chevron.

Chevron, meanwhile, said in its proxy filing that the board should have the flexibility to choose its leadership structure. However, Glass Lewis recommended that Chevron investors support a proposal for an independent board chair separate from the CEO role, which it says leads to a more proactive and effective board.