Exxon, Chevron face dissent from proxy firms ahead of annual meetings

HOUSTON, May 13 (Reuters) – Proxy advisory firms Glass Lewis and Institutional Shareholder Services have recommended that Exxon Mobil and Chevron investors vote against some of the boards’ positions on shareholder proposals, including those against Exxon’s plan to redomicile in Texas.

Both U.S. oil producers have long been subject to critical shareholder proposals urging companies to consider climate and human rights risks, and the recommendations of proxy advisors have been closely watched. The companies will hold their annual shareholder meetings on May 27.

You can find more details about the recommendations here:

* Exxon investors should vote against a proposal to change the company’s incorporation from New Jersey to Texas because the move could restrict shareholder rights and make legal recourse more difficult, Glass Lewis and ISS said in reports this month.

* ISS also recommended approval of Exxon’s proposal to add more options to its retail voting program, including the option for retail investors to automatically vote against the board’s recommendations.

* In a filing Tuesday, Exxon hit back at the New York City Comptroller’s Office, which submitted the ballot proposal, saying its criticisms of the company were politically motivated.

* Exxon also said Glass Lewis was “misinformed” in recommending against the Texas move.

* Glass Lewis said Chevron shareholders should not re-elect former Utah Gov. Jon Huntsman Jr. to the board because he has an executive role at Mastercard and also serves on Ford Motor’s board, which could affect his commitment to Chevron.

* Glass Lewis said Chevron investors should support the proposal for an independent chairman separate from the CEO role because it would lead to a more proactive and effective board.

* Chevron said in its proxy statement that the board should have flexibility to choose its leadership structure.

(Reporting by Sheila Dang in Houston; Editing by Rod Nickel)