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Apr-30-2008Rockefellers urge CEO, chairman split at Exxon Mobil(topic overview)
CONTENTS:
- HOUSTON (Reuters) - Members of the wealthy Rockefeller family who are shareholders of Exxon Mobil Corp (XOM.N: Quote, Profile, Research ) are concerned about the oil company's direction under Chief Executive Rex Tillerson and support a bid to split his job, and name an independent chairman to the board. (More...)
- Peter O'Neill, head of the Rockefeller Family committee dealing with ExxonMobil, and great-great-grandson of John D. Rockefeller, is a filer of the shareholder resolution requesting an independent board chairman at ExxonMobil. (More...)
- Consider the latest fashion: carbon capture and storage (CCS). (More...)
- Lead Filer: Sisters of St. Dominic of Caldwell, NJ. Co-Filers: Abby O. Caulkins, Alida Rockefeller Messinger, Richard G. Rockefeller, Marion R. Weber. -- Resolution #19: Adopt Renewable Energy Policy. (More...)
- If the Rockefeller family urges action on "climate change" you can bet your wealth that there is much more up to that. (More...)
- The family also called for new rules to require an independent board chairman. (More...)
- Currently, the company's Chief Executive Rex Tillerson also serves as chairman of the company's board. (More...)
- Environmental Capital provides daily news and analysis of the business of the environment. (More...)
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HOUSTON (Reuters) - Members of the wealthy Rockefeller family who are shareholders of Exxon Mobil Corp (XOM.N: Quote, Profile, Research ) are concerned about the oil company's direction under Chief Executive Rex Tillerson and support a bid to split his job, and name an independent chairman to the board. Descendants of oil baron John D. Rockefeller have sponsored four shareholder proposals this year that raise a range of concerns about Tillerson's failure to address the future of energy and related industry hurdles, they said. [1] "A majority of the family is now so concerned about the direction of ExxonMobil that it is urging a major change in corporate governance in the form of an independent chairman of the board and a bigger leadership role for the oil company's board of directors," the family said in a statement. The Rockefellers have previously had a behind the scenes role in the firm but are now pressing for a shake-up in its corporate governance. Rex Tillerson is currently CEO and chairman of the firm but the family wants to split his role and introduce an external chairman. Exxon has reportedly said that it believes keeping Tillerson in both roles would be in the best interests of the company. The Rockefeller family has called a news conference for Wednesday (30 April) to discuss their concerns. "After years of working behind the scenes to encourage Exxon's management to approach its industry challenges in new ways, members of the Rockefeller family will publicly explain the concerns held by multiple generations of their family," the family's statement said. Exxon and Mobil merged in 1999, both having originally been part of Standard Oil, which was founded in 1870 by oil baron John D Rockefeller (pictured).[2] This season will kick off with a bang, as big-name corporate gadflys and at least one famous family targets the world's biggest nonstate-owned oil company, ExxonMobil Corp. Some members of the Rockefeller familyheirs to John D.' s Standard Oil empirewill throw their weight behind a longstanding resolution to force Exxon to change how it does business, at a time when concerns over climate change are causing boardroom rethinks across the Fortune 500. The last two years, corporate activist Robert Monks has tried to get Exxon to split its chairman and chief executive into separate roles, in order to give the board 'independent' direction. The resolutions have failed'but, just as relevant since they're largely symbolic, they have gradually garnered more support. This year, with the backing of the Rockefellers, Mr. Monks thinks the resolution could pass. Exxon says its board is perfectly capable of deciding how to manage the company, though it will reconsider if a majority of shareholders vote for a change at the top. The Rockefeller challenge to Exxon is just the tip of the iceberg this year.[3] Exxon Mobil was formed by the combination of two offspring of John D. Rockefeller's Standard Oil Trust. It is now the world's largest publicly traded oil company. Members of the family said they have sponsored four proxy resolutions this year that raised concerns about the company's leadership under Chairman and Chief Executive Rex Tillerson. They also said they have spent years behind the scenes prodding the company to change its approach to the oil business. The family and its allies decided to take their case public, they said, because they believe future energy will come from sources other than oil and natural gas, and say the company needs to move more quickly into sustainable technology to secure its long-term viability. "We all know the saying: The bigger they are, the harder they fall," said Connecticut State Treasurer Denise L. Nappier, who oversees a pension fund that holds $300 million in Exxon Mobil stock -- its largest single equity investment. She spoke at a press conference alongside the Rockefellers.[4]
CHICAGO -- Descendants of 19th-century oil magnate John D. Rockefeller want the company he founded, Exxon Mobil Corp., to bar the chief executive officer from serving as chairman so management can't delay action on climate change. Rockefeller family members, including Neva Rockefeller Goodwin, a great-granddaughter of the scion, and Peter O'Neill, head of the Rockefeller family committee dealing with Exxon Mobil issues, will announce their support on April 30 for a shareholder resolution to split the positions, a family spokesman said yesterday.[5] Peter O'Neill is head of the Rockefeller family committee dealing with Exxon Mobil and great-great-grandson of John D. Rockefeller, who founded Standard Oil Co., the predecessor to Exxon. O'Neill said that an independent chairman leading an independent-thinking board of experienced directors would "substantially improve Exxon's ability to look the future squarely in the face and will increase its flexibility." The shareholder resolutions will be voted on when Exxon Mobil holds its annual meeting on May 28 in Dallas.[6] NEW YORK, April 30 /PRNewswire/ -- In an unprecedented step, a majority of Rockefeller Family members -- the oldest continuous shareholders in Exxon Mobil Corporation (NYSE: XOM ) -- today publicly called on other shareholders to join them in supporting a shareholder resolution to require an independent chairman of the board of directors, so that the company founded by John D. Rockefeller can better maximize long-term shareholder value in a rapidly changing energy environment.[7]
The Rockefellers believe that an independent chairman would have a better perspective to examine alternative energy opportunities. It was the family patriarch John D. Rockefeller who founded Standard Oil Company, from which Exxon Mobil and Chevron (nyse: CVX - news - people ) descended. The oil wealth made Rockefeller the richest person in America until his death in 1937.[8]
John D. Rockefeller founded Standard Oil Co. --the precursor to Exxon Mobil--in 1870, now his descendants are calling on the company to become more forward thinking and adopt a renewable fuels strategy. Fifteen of his family members are involved in four shareholder resolutions seeking changes at Exxon, according to a Reuters report. The resolutions call on the oil company to reduce the greenhouse gas emissions of its operations and adopt a renewable energy policy. She added that the company should reestablish the forward-thinking practiced by her great grandfather. "Kerosene was the alternative energy of its day when he realized it could replace whale oil.[9]
Efforts to meet with the Board and its key Independent members have been declined. KEY ISSUES CITED BY ROCKEFELLER FAMILY MEMBERS A total of 15 Rockefeller Family members have filed or co-filed four shareholder resolutions urging ExxonMobil to look beyond its current focus also to more effectively address a rapidly evolving energy industry, including the growing market in renewables and alternative fuels that competitors Shell, Chevron, BP, Total and Petrobras now are expanding into to a much greater extent than ExxonMobil. The shareholder resolutions will be voted on when ExxonMobil holds its annual meeting on May 28, 2008 in Dallas. Having an independent chairman would, these Family members believe, allow broader analysis and consideration of technologies and opportunities emerging in the sector without being influenced by the preferences and personal experiences of management; such influence weakens the board's important role of providing oversight of management and accountability to shareholders regarding these issues. Top managers have spent their entire careers at Exxon, which is a core strength for the company in many ways, and produces a stellar project-management team. It also has the potential to create a culture that has little flexibility to incorporate innovation beyond its core competencies. -- ExxonMobil says that it "believes technology is an essential component of any long-term plan to address climate change risks." It has done much less than others in its industry with regard to renewable technologies, often stating that it is looking for breakthroughs.[7] The family members, who are the oldest continuous shareholders in Irving-based Exxon (NYSE: XOM), want other shareholders to support a resolution requiring the change. The reason: An independent chairman can maximize long-term shareholder value by pursuing new energy renewables and alternative fuels like its competitors Shell, Chevron, BP, Total and Petrobras. Rex Tillerson serves as both chief executive and board chairman.[6] Multiple family members are now pushing for major change at Exxon due to concerns over the company's direction under Chief Executive Rex Tillerson (a runner-up for Fossil Fool of the Year). They want to see his job split, with an independent chairman appointed to the board. "They are concerned Exxon's senior management has tunnel vision and is too absorbed with the challenges of daily management of multibillion dollar oil and natural-gas projects to ask hard questions about the future of fossil fuels. Mr. Tillerson and other Exxon executives have said they believe oil and gas will represent the vast majority of energy consumption for decades." Keep your eyes and ears open as several family members are scheduled to have a news conference this Wednesday on the issue.[10]
Peter O'Neill, head of the group of Rockefeller family members, said "if the next 20 years of the energy business were just going to be about oil and gas, we probably wouldn't be here today." "Having an independent chairman leading an independent-thinking board of very experienced directors will substantially improve Exxon's ability to look the future squarely in the face and will increase its flexibility."[11]
Peter O'Neill, a great-great-grandson of John D. Rockefeller, speaks at a news conference Wednesday, April 30, 2008, in New York. The family members, who describe themselves as the company's longest continuous shareholders, said they are concerned that the Irving, Texas-based company is too focused on short-term gains from soaring oil prices and should do more to invest in cleaner technology for the future. "They are fighting the last war and they're not seeing they're facing a new war," said Peter O'Neill, who heads the Rockefeller Family committee dealing with Exxon Mobil and is the great-great-grandson of John D. Rockefeller. He said he had the support of more than 80 percent of family members over the age of 21. Family representatives said it was a significant holding for the Rockefellers but that they were not sure how much of the company they actually own collectively.[4] Even though Exxon Mobil is posting record profits, some shareholders aren't happy. A group of them said Wednesday the company is overlooking its effect on the environment and the future of alternative energy. These aren't just any shareholders. They're Rockefellers, the first family of American oil. They proposed four shareholder resolutions Wednesday to be voted on at Exxon Mobil's (nyse: XOM - news - people ) annual meeting May 28.[8] The Rockefellers also say that Exxon Mobil is lagging behind competitors in the growing market for renewable and alternative energy. They say companies like Shell (nyse: RDS.A - news - people ), Chevron, BP (nyse: BP - news - people ), Total (nyse: TOT - news - people ) and Petrobras are all better pursuing opportunities in the area. The Rockefellers don't have enough voting power on their own to guarantee a successful vote for their resolutions, but the influence that comes with their family name could help win a victory. At least one of their proposals already has strong support with other shareholders.[8]
The Irving, Tex.- based company, led by Rex Tillerson since Mr. Raymond's January, 2006, retirement, opposes the proposal, one of 17 shareholder resolutions up for consideration at the annual meeting. Mr. Mitchell said he didn't know how much of Exxon Mobil's ownership still is concentrated in Rockefeller family hands.[5] O'Neill did not disclose how much of a stake the Rockefellers hold in Exxon Mobil, but said that 15 members of the family are involved in four shareholder resolutions, including a push to divide the CEO and chairman positions.[11]
' Members of the Rockefeller family want Exxon Mobil to split the chairman and CEO jobs, lending a powerful name to a long debate among investors. Members of the family that founded Exxon's predecessor company, Standard Oil, will hold a news conference today to explain their concerns.[12] Members of the Rockefeller family are jousting with Rex Tillerson, the boss of ExxonMobil, calling for an independent chairman and a corporate governance upheaval at the oil company, which was once part of Standard Oil, founded by John D. Rockefeller in the 19th century.[13] Standard Oil, the company John D. Rockefeller founded and turned into an economic superpower, was forced to break up into roughly 34 different companies around 1911. Two of these pieces eventually became Exxon and Mobile respectively. As you all know, these two companies are now combined, which has created the worlds largest integrated oil company. Since this new economic superpower was born from the Standard Oil breakup, the Rockefeller family still has significant power within ExxonMobile - through stock ownership, trusts, and personal clout.[10]
A group of descendants of John D. Rockefeller, who founded Exxon's predecessor Standard Oil in 1870, will begin a campaign to split the role of chief executive and chairman of the board at the oil and gas group, a role held by Rex Tillerson.[14] BACKGROUND: JOHN D. ROCKEFELLER AND EXXONMOBIL John Davison Rockefeller (July 8, 1839 - May 23, 1937) was a founder of today's energy business. He was the guiding force behind the creation and development of the Standard Oil Company, which grew to control 90 percent of the American petroleum industry and is the parent entity from which ExxonMobil and Chevron are descended, as well as ARCO and Amoco (both now BP), Pennzoil (now Shell) and Conoco. Mr. Rockefeller donated much of his wealth, becoming one of the first major philanthropists in the U.S. and the world. His gifts for charitable purposes were worth many billions in today's dollars. He was the guiding force behind the establishment of such organizations as The Rockefeller Institute for Medical Research (now The Rockefeller University), The Rockefeller Foundation to "promote the well-being of mankind throughout the world," the General Education Board for the "promotion of education within the United States of America without the distinction of race, sex or creed," and the University of Chicago.[7] Technology was just a means to an end for John D. Rockefeller, whose objective was market dominance. He won and his company became the standard energy product until the U.S. courts broke Standard Oil, but by that time it was too late. Rockefeller's model of oil refining and distribution had been set and the oil industry claimed its grip on America.[13] There is a strategic vacuum at the heart of the energy industry. In such an environment, leaders can emerge and at the turn of the 20th century Standard Oil was such a company, hell-bent on developing a standard petroleum product that would achieve universal acceptance. John D. Rockefeller bullied and bulldozed his way to the top of the pile and the market was awash with his kerosene.[13]
Exxon Mobil was formed by the combination of 2 offspring of John D. Rockefeller's Standard Oil Trust and is now the world's largest publicly traded oil company.[15] The company was formed by Exxon Corp.' s $85-billion (U.S.) acquisition of Mobil Corp. in 1999, which combined two entities born in the court-ordered 1911 dissolution of John D. Rockefeller's Standard Oil Trust.[5]
Irving, Texas-based Exxon Mobil (NYSE: XOM ) is getting some heat today from the descendants of the company's founder, John D. Rockefeller, for not investing more in renewable energy. Members of the Rockefeller family are calling on the company to make changes in its corporate governance and to adopt a renewable technology strategy.[11] Don't bite the had that feeds you. John D. Rockefeller founded the company which eventually became Exxon Mobil (NYSE: XOM ) and now his family wants changes in governance at the firm. They would do best to keep their opinions to themselves.[16]
Neva Rockefeller Goodwin, a great-granddaughter of John D. Rockefeller, said Wednesday, "The truth is that Exxon Mobil is profiting in the short term from investments and decisions made many years ago, and by focusing on a narrow path that ignores the rapidly shifting energy landscape around the world, including developing nations."[8] Exxon is "profiting in the short term from investments and decisions made many years ago by focusing on the narrow path that ignores the rapidly shifting energy landscape around the world, including developing nations," said Neva Rockefeller Goodwin, great granddaughter of John D. Rockefeller. Goodwin called on Exxon to reconnect with the forward-looking vision of her great grandfather. "Kerosene was the alternative energy of its day when he realized it could replace whale oil.[17]
Peter O'Neill, head of the Rockefeller Family committee dealing with ExxonMobil, and great-great-grandson of John D. Rockefeller, is a filer of the shareholder resolution requesting an independent board chairman at ExxonMobil. [7] Lead Filer: Robert Monks, Ram Trust Services Inc. Co-Filers: Peter O'Neill and John deCuevas. -- Resolution #17: Establish a Task Force to Study the Consequences of Global Warming on Poor Economies. Resolved: Shareholders ask ExxonMobil Corporation's ("ExxonMobil's) Board of Directors to establish a task force, which should include both (a) two or more independent directors and (b) relevant company staff, to investigate and report to shareholders on the likely consequences of global climate change between now and 2030, for emerging countries, and poor communities in these countries and developed countries, and to compare these outcomes with scenarios in which ExxonMobil takes leadership in developing sustainable energy technologies that can be used by and for the benefit of those most threatened by climate change.[7]
"A majority of the family is now so concerned about the direction of ExxonMobil that it is urging a major change in corporate governance in the form of an independent chairman of the board and a bigger leadership role for the oil company's board of directors," members of the Rockefeller family said in a statement.[18] A majority of the Rockefeller family members are putting the squeeze on Exxon Mobil Corp. to require that an independent chairman lead its board of directors, particularly someone with an eye to pursuing evolving energy markets.[6] NEW YORK (AP) -- Members of the Rockefeller family, descended from the founder of what became Exxon Mobil Corp., challenged the oil giant Wednesday to split the roles of chairman and CEO and focus more on renewable sources of energy.[4] NEW YORK (Reuters) - Members of the Rockefeller family are calling on Exxon Mobil Corp to make corporate governance changes and adopt a renewable fuels strategy to help address the soaring cost of energy.[17]
NEW YORK (AP) - Members of Exxon Mobil's founding family called on the Irving, Texas-based oil giant today to split the roles of chairman and CEO.[15]
Exxon Mobil is the world's largest publicly traded oil company based on market capitalization. "The board believes that the most effective leadership structure for Exxon Mobil Corporation at the present time is for Mr. Tillerson to serve as both Chairman and CEO," Exxon said in response to the proposal for an independent director in its annual proxy statement.[1] ExxonMobil's board of directors recommended to vote against the proposal in the company's 2008 proxy statement, saying that the decision as to who should serve as chairman and chief executive, and whether the offices should be combined or separated, "is the proper responsibility of the Board." The proxy statement added: "The Board believes that the most effective leadership structure for ExxonMobil Corporation at the present time is for Mr. ( Rex) Tillerson to serve as both Chairman and CEO."[18]
CEO Rex Tillerson also currently serves as the chairman of the company's board. This resolution received 40 percent support in 2007, at a time when ExxonMobil was announcing record-breaking earnings. O'Neill said: "It was not an easy decision for the majority of the Rockefeller Family to go public with our concerns.[7] The truth is that ExxonMobil is profiting in the short term from investments and decisions made many years ago, and by focusing on a narrow path that ignores the rapidly shifting energy landscape around the world, including developing nations." Goodwin and O'Neill said that, after identifying a number of areas of vulnerability for ExxonMobil, Rockefeller Family members met several times with the top management of ExxonMobil since 2003 to express their concerns.[7]
Fifteen members of the Rockefeller family have supported resolutions urging the company to address the evolving energy industry. Just as John Rockefeller helped transition the economy from whale oil to kerosene, his descendants asked the company to explore today's alternate fuels.[19] A statement issued yesterday by the Rockefeller family was a warning shot, saying that Exxon's leadership is "failing to address the future of energy and related industry hurdles," and that "a majority of the family is now so concerned about the direction of ExxonMobil Corporation that it is urging a major change."[10] Last night the family group issued a statement saying that the company's leadership was "failing to address the future of energy and related industry hurdles". It said that representatives would make an announcement in New York to explain "that a majority of the family is now so concerned about the direction of ExxonMobil Corporation that it is urging a major change".[14]
Exxon's riposte to the climate change and peak oil lobbies is that technology rather than regulation will provide answers to our energy problems. It is a disingenuous argument because the energy industry is at the governments' knees begging for help - big dollops of taxpayer cash to build experimental power stations. It is not merely subsidies that the energy industry demands, it is guidance, direction and regulation.[13] Fifteen descendants of the oil baron are involved in four shareholder resolutions seeking changes at Exxon, including dividing the CEO and chairmanship positions. They also seek to establish a task force study of the consequences of global warning on poor economies, called on Exxon to reduce greenhouse gas emission at its own operations and adopt a renewable energy policy.[17] Ceres, a coaltion of shareholders especially concerned with how businesses deal with climate change, says activist shareholders filed 43 resolutions last year, which garnered 21% support on average. The shareholder resolutions take aim at a variety of companies such as Citigroup, Ford, General Motors, Southwest Airlines, Southern Company, and Kroger.[3] The campaign by the Rockefeller family is putting added pressure on traditional oil and natural gas companies, which are grappling with how to deal with climate change and the move toward alternative fuels.[18]
The Rockefeller family has expressed concern over how ExxonMobile, the world's largest oil company of which the family are major shareholders, is being run.[2] The experience of BP under John Browne shows going green without a sound business plan is the best way to destroy shareholder value and reputation. The Rockefeller family should enjoy the money John D gave them and stay out of Exxon's business.[3] The campaign is being spearheaded by Neva Rockefeller Goodwin, an economist and great-granddaughter of John D. Rockefeller, as well as Peter O'Neill, head of the Rockefeller family committee dealing with ExxonMobil. He is a great-great-grandson of John D. Rockefeller.[14]
Part of John D. Rockefeller's genius was in recognizing, early on, the need and opportunity for a transition to a better, cheaper and cleaner fuel. As he noted: 'If you want to succeed, you should strike out on new paths, rather than travel the worn paths of accepted success.' We recognize and appreciate that ExxonMobil's management has been extremely skilled at managing the oil and natural gas business.[7]
If the next 20 years of the energy business were just going to be about oil and gas, we probably wouldn't be here today. Having an independent chairman leading an independent-thinking board of very experienced directors will substantially improve Exxon's ability to look the future squarely in the face and will increase its flexibility.[7] According to The Wall Street Journal, the family's proposals "include urging the company to create an independent chairman post, cut greenhouse-gas emissions and examine whether Exxon should take a more active role in developing sustainable energy technologies."[16]
Exxon Mobils board is recommending shareholders vote against the proposal to split the role of chairman and CEO.[20] Usually shareholders push for change when a company is foundering, but Exxon Mobil posted the largest annual profit by a U.S. company ever last year.[8] Thanks to rapidly rising oil prices, that is considerably more than the company earned a year earlier, and could even top Exxon Mobils own record for the biggest quarterly profit in U.S. history.[20]
Exxon Mobil is the world's largest publicly traded oil company based on market capitalization, and is a favorite target of consumer advocate groups and politicians unhappy with record prices for oil and gas and its effects on the environment.[17] Exxon Mobil is the world's largest company by market value and pumps more oil than every member of the Organization of Petroleum Exporting Countries except Saudi Arabia and Iran.[5]
The family members said "it may turn out that four or five types of solar technologies or wind or geothermal will develop along side each other." The investments from those other companies "have already enabled Exxon Mobil's competitors to secure potentially lucrative positions in specific alternative energy markets, prepare for regulatory requirements, and raise their credibility in public policy debates," according to the group.[11] Developing new forms of alternative energy is essentially the job of smaller companies which will eventually compete with Exxon for business.[16]
While the Rockefellers beat their breasts, most shareholders will continue to love the fat Exxon dividend. Underlying the protest from the trust fund Rockers is a big problem for oil companies - their ever-increasing reliance on the support of governments and regulators.[13] Some Rockefellers don't like Exxon's lofty disdain for the environmental lobby and its refusal to consider anything other than a simple diet of more hydrocarbons. They are pushing for a vote on the issue at the annual meeting. It is less exciting than it sounds. The Rockefellers are not controlling shareholders and investors do not like change for its own sake - Exxon's profitability and valuation is leagues ahead of rivals, such as BP, Shell and Chevron, the industry's green agony aunts.[13]
Mutual funds and other institutional investors, not individuals, are the companys top shareholders. "We feel tied very closely to this company, and thats why we feel so passionately about them becoming the best company they can be," said Neva Rockefeller Goodwin, an economist and family member who briefed reporters.[20] Co-Filers: Mary R. Morgan, Abby O'Neill, Ann R. Roberts, David Rockefeller, Jr., and Steven C. Rockefeller. -- Resolution #15: Reduce Greenhouse Gas Emissions for Products and Operations. Resolved: Shareholders request that the Board of Directors adopt quantitative goals, based on current technologies, for reducing total greenhouse gas emissions from the Company's products and operations; and that the Company report to shareholders by September 30, 2008, on its plans to achieve these goals. Such a report will omit proprietary information and be prepared at reasonable cost.[7] ABOUT THE ROCKEFELLER RESOLUTIONS -- Resolution #5: Require an Independent Board Chairman. Resolved: That the shareholders urge the Board of Directors to take the necessary steps to amend the by-laws to require that an independent director shall serve as Chairman of the Board of Directors, and that the Chairman of the Board of Directors shall not concurrently serve as the Chief Executive Officer.[7]
The family is asking Exxon to study the impact of global warming on poor economies. They seek to separate the roles of chief executive and chairman of the board, to allow better analysis of emerging technologies. In 2007, a resolution to separate these roles did not pass, though it gained 40% support.[19]
The resolution cites former chairman and CEO Lee Raymond's curt response to a question at the 2004 annual meeting about global warming from Dale McCormick, then-treasurer of Maine. "This is the first time the Rockefellers have really come out front on this in this way," Patrick Mitchell, a Hastings Group representative acting as spokesman for the family, said in a telephone interview.[5]
Anthony Sabino, a corporate attorney and professor of law and business at St. Johns University, said calls to separate the two roles have been growing across a number of industries. While the Rockefellers themselves have limited power to sway the vote on any one proposal, he said they may nonetheless carry weight with shareholders. "Their very recognizable celebrity name will add luster to what the other institutional investors mutual funds, pension funds have been saying, that hey, its time to do this," he said.[20] The proposal the Rockefeller family is supporting is lead by shareholder Robert Monks, who is the founder of a law firm aimed at holding corporate management accountable to ownership.[18]
Members of the Rockefeller family also called on the company to give board members more say in how the company is run.[15] The family's stake in the company was not immediately known, according to a spokesman. Several family members plan to hold a rare news conference on Wednesday in New York to discuss their concerns, they said in a statement on Monday.[1] The family members describe themselves as the company's longest continuous shareholders. They say they're concerned about the direction of the company's management.[15]
ExxonMobil spokesman Alan Jeffers declined to comment beyond what the board expressed in the company's proxy statement. If the proposal receives majority approval on May 28 and it's not supported by the board, it will be reconsidered by the board and any decision taken will be reported to shareholders in a "timely manner," according to ExxonMobil's governance guidelines.[18] I want to be very clear that as an ExxonMobil shareholder, I have a world of respect for what the company has done well.[7]
Today, Ceres will be squaring off with CONSOL Energy, the big Pittsburgh-bsaed coal company, which some shareholders say can't carry on doing 'business as usual' in the face of impending climate-change legislation that could make coal more expensive and less attractive as a power source.[3]
Shareholders will vote on the resolution at Exxon Mobil's annual meeting on May 28 in Dallas.[5] O'Neill said the resolutions are expected to be voted on at Exxon Mobil's annual meeting on May 28 in Dallas.[11]
Shares of Exxon Mobil closed off 1 cent at $92.45 on the New York Stock Exchange.[1] The calls for reform came one day before Exxon Mobil was expected to report first-quarter earnings of more than $11 billion (7.08 billion), according to a survey of analysts by Thomson Financial.[20]
Exxon, which earned $40 billion (£20 billion) last year, when Mr Tillerson was paid $21.7 million, was the slowest of the big oil majors to acknowledge climate change.[14] Exxon produces nearly 4.2 million barrels of oil a day and had revenues of $404.5 billion during the past fiscal year. Its market capitalisation is about $500 billion.[14]
Consider the latest fashion: carbon capture and storage (CCS). Its supporters reckon that it is the best option for large-scale power generation. The Chinese and Indians can carry on burning their coal - we will just stick CCS units on to thousands of power stations and pump the offending gases into old oil wells or coalmines. It can work, say the oil companies, but there are various competing technologies. No one has built a commercially viable plant and the best estimates are that such a plant would cost about €1 billion (£790 million). It would also require continuing subsidy in the form of a very high carbon price - between four and five times the present price of CO2 to ensure that the electricity generated was price-competitive with power generated by conventional gas plants. [13] Owning 90% of the kerosene market, Standard Oil was found to have originated in illegal monopoly practices and was ordered to be broken up into 34 separate companies in 1911. Rockefeller kept his shares in each company and passed them on to his children.[2] In 2006 Senator Jay Rockefeller wrote to Mr Tillerson urging the company to stop funding groups that denied the existence of climate change.[14] Ceres' drive to put climate change at the center of boardroom deliberations is met with resistance from another activist group, the Free Enterprise Action Fund. It sues companies it thinks are 'caving in' to global warming concerns and threatening profits and shareholder value.[3] Exxon faces three other similar resolutions. U.S. companies collectively face 55 shareholder resolutions asking them to explain how their companies are affected by climate change'and how they plan to react.[3] The shareholder resolutions will be addressed at Exxon's annual meeting, scheduled for May 28.[9]
Lead Filer: Sisters of St. Dominic of Caldwell, NJ. Co-Filers: Abby O. Caulkins, Alida Rockefeller Messinger, Richard G. Rockefeller, Marion R. Weber. -- Resolution #19: Adopt Renewable Energy Policy. Resolved: That ExxonMobil's Board adopt a policy for renewable energy research, development and sourcing, reporting on its progress to investors in 2009. [7] The family is calling for the company to reduce greenhouse gases from operations and products, to establish a task force to study the effects of global warming and to adopt of a renewable energy policy.[8] The family said the company has done much less than others in the oil industry with regard to renewable technologies.[11]
If the Rockefeller family urges action on "climate change" you can bet your wealth that there is much more up to that. [14] The Rockefeller family has previously taken many pro-environment steps, but, of late, the steps are becoming bolder.[10]
The family also called for new rules to require an independent board chairman. [8] The family is calling for an independent chairman and a bigger leadership role for the directors.[14] The family is also pushing for a bigger role for Exxon's board of directors.[1]
Currently, the company's Chief Executive Rex Tillerson also serves as chairman of the company's board. [8] Last year, a resolution for an independent board chairman received 40% support.[8]
"ExxonMobil is profiting in the short term from investments and decisions made many years ago," said Neva Rockefeller Goodwin, John Rockefeller's great- granddaughter.[19] Part of John D. Rockefeller's genius was in recognizing early the need and opportunity for a transition to a better, cheaper and cleaner fuel."[17]
Environmental Capital provides daily news and analysis of the business of the environment. It tracks how growing green concern, particularly over climate change, is roiling established industries and spurring new ones ' and how that shift is affecting investors, consumers and the planet. [3]
SOURCES
1. Rockefeller family members urge change at Exxon | Reuters
2. Families in Business - Rockefellers want change at Exxon
3. Environmental Capital - WSJ.com : Rocking Exxon: Rockefellers Back Resolution Pushing Exxon to Go Green
4. ABC News: Oil Clash: Rockefellers Take on Exxon
5. reportonbusiness.com: Rockefellers to support splitting Exxon CEO, chairman roles
6. Rockefeller family pushing for Exxon Mobil changes - Dallas Business Journal:
7. Rockefeller Family Members Urge ExxonMobil to 'Reconnect With Founder's Vision' by Appointing Independent Chairman to Tackle Changing Energy Realities
8. Rockefellers Want More Green From Exxon Mobil - Forbes.com
9. Rockefellers Call for Renewable Fuel Strategy at Exxon Mobil
10. Rockefellers Want Change! « It's Getting Hot In Here
11. Rockefellers push for more renewables at Exxon Mobil | Cleantech.com
12. Around the nation | Chron.com - Houston Chronicle
13. ExxonMobil row masks true green dilemma - Times Online
14. Rockefellers urge action on climate change - Times Online
15. KLTV 7 News Tyler, Longview, Jacksonville |Rockefeller kin take Exxon Mobil shareholder fight public
16. Rockefellers should keep their opinions about Exxon to themselves - BloggingStocks
17. Rockefellers call for change at Exxon Mobil | U.S. | Reuters
18. UPDATE:Rockefeller Family Supports CEO,Board Chairman Split At Exxon
19. Rockefeller Family:Exxon Ignoring Shifting Energy Landscape
20. Rockefeller family seeks change in Exxon leadership and greater focus on renewable energy - International Herald Tribune
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