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May-01-2008On the Watch: Exxon seen posting sharply higher 1Q profit(topic overview)
CONTENTS:
- The Rockefellers made a point of repeatedly complimenting the hired help on jobs well-done. (More...)
- 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. (More...)
- In a statement yesterday, Neva Rockefeller said, " 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." (More...)
- The resolution to separate the positions of chairman and C.E.O. is similar to one put forward last year, which received 40 percent of the vote. (More...)
- I couldn't disagree more. (More...)
- The oil giant 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,' Rockefeller's great granddaughter economist Neva Rockefeller Goodwin told reporters. (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...)
- The current Rockefeller crop is pushing for alternative fuels as much as splitting the chairman/CEO positions. (More...)
- 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. (More...)
- While other Big Oil chief executives have lent credence to the idea that global oil reserves are dwindling, ExxonMobil executives say the world has ample hydrocarbon reserves, and supplies are constricted due to a lack of access to those reserves. (More...)
- Filed under: Earnings reports, Management, Exxon Mobil opnbrktXOMclsbrkt, [[ BP p.l.c. (More...)
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The Rockefellers made a point of repeatedly complimenting the hired help on jobs well-done. "It's not about Rex Tillerson," said Peter O'Neill. "He's an amazing oil and gas manager." Management, he continued, is "very good about planning these big projects and implementing them, and they should be applauded for it." While the Rockefellers very much appreciate the $40 billion in profits Exxon Mobil earned last year, the family notes that there are "serious disjunctions that we perceive between Exxon's short-term actions and the long-term health of both this company and the economy." The 66 adult descendants of John D. Rockefeller who signed on to this initiative (84 percent of the total) are worried: Competitors have been more aggressive on renewables and alternative energy; having the same person hold the job of chief executive officer and chairman of the board contributes to an insular culture and a lack of critical and imaginative thinking; the company isn't thinking outside the barrel to deal with climate change or prepare for regulatory changes. So they have reluctantly decided to call publicly for shareholder votes on a resolution to separate the posts of chairman and chief executive officer, and on a resolution to have Exxon Mobil convene a task force to examine the company's assumptions about growth markets and the consequences of global climate change on poor economies. [1] 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.[2]
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.[3] "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).[4] 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.[5] 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.[6] Rex Tillerson became C.E.O. and chairman of Exxon Mobil in January 2006. (Exxon Mobil recommends that shareholders reject all four proposals.) Rockefeller family members had quietly brought up these issues with company executives in years past, said Goodwin's cousin Peter O'Neill, a great-great-grandson of John D. "It was not an easy decision for the majority of the Rockefeller family to go public with our concerns," he said. Goodwin hailed Exxon Mobil's "strong corporate culture," noting that its top executives have spent their entire careers at the company. She added, that culture "includes not listening to outside voices." Goodwin recalled an informal lunch that she had with Lee Raymond, then chairman and chief executive of Exxon Mobil, and Tillerson who was about to succeed him. "I was told I had to behave myself and not say much," she said.[7]
NEW YORK (AP) -- Members of the Rockefeller family took a fight with Exxon Mobil Corp. public Wednesday, challenging the oil giant spawned by their namesake to split the roles of chairman and CEO and focus more on renewable energy. The family members, who describe themselves as the company's longest continuous shareholders, said they are concerned that Irving, Texas-based Exxon Mobil is too focused on short-term gains from soaring oil prices and should do more to invest in cleaner technology for the future. Separating the leadership roles, they argue, would better position the company for challenges to come. "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. O'Neill said he had the support of more than 80 percent of family members over the age of 21. Family representatives said they were not sure how much of the company they own collectively, but that it represented a significant holding.[8] 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.[9] 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.[10]
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.[11] Descendants of John D Rockefeller, America's first and biggest oil industry magnate, say that ExxonMobil, a company spawned from his 19th-century monopoly Standard Oil, faces becoming obsolete if it does not step up the search for alternative fuels. Fifteen family members yesterday went public in an attempt to get Exxon to face up to the realities of climate change, and they promised to join a shareholder rebellion to shake up the board to alter company's strategy. "Kerosene was the alternative energy of its day when he realised it could replace whale oil," said Neva Rockefeller Goodwin, great-granddaughter of the oil Standard Oil founder.[12] 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.[13]
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.[9] 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.[10] 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.[14]
Members of the Rockefeller family are sponsoring four proxy resolutions that raise concerns about the company's leadership under Chairman and Chief Executive Rex Tillerson. They said they have spent years behind the scenes prodding the company to change its approach to the energy business. Exxon Mobil spokesman Gantt Walton said the company has met with members of the Rockefeller family on multiple occasions and "respects the rights of all shareholders to make their views known,'' but that it does not comment on details of meetings with shareholders.[8] The Rockefellers want the company to go much further, however. They are backing resolutions at the Exxon's shareholder meeting next month which call on the company to fund research into how climate change will affect developing nations. They believe a push into alternative fuels by Exxon and other major oil companies could improve the situation, and demand a new policy on funding alternative fuels. They also want the company to set public goals for reducing carbon emissions from their output - targets which, if tough enough, would force the company to offer less-polluting products than oil and gas. They are also demanding that Mr Tillerson split the roles of chairman and chief executive, a resolution which last year won 40 per cent of the vote.[12]
The fight for the legacy of John D. Rockefeller 'founder of Standard Oil'is on. His great- and great-great grandchildren held a news conference in New York Wednesday and called on Exxon Mobil, a chief heir to Standard Oil, to split up the chairman and chief executive officer positions. Their thinking: freeing up Rex Tillerson, who holds both jobs, to focus on running the company.[15] Descendants of John D. Rockefeller, who founded Exxon's predecessor Standard Oil in 1870, will begin a campaign today to split the role of chief executive and chairman of the board, a role held by Rex Tillerson. Why? He has failed "to address the future of energy and related industry hurdles,''' according to a statement released by the family.[16]
Exxon management is advising shareholders to vote against the independent chairman proposal. They contend there is "no single best organizational model"; one standard argument against an independent chairman is that it would dilute Tillerson's power and potentially undermine his ability to lead. Of course, the legendary John D. Rockefeller could be both a visionary and focus on the operational details at the same time. Daniel Yergin, in his classic book on the oil business, "The Prize: The Epic Quest for Oil, Money Power," describes him as a powerful, controlling figure who built and ruled Standard Oil by being two or three steps ahead of the competition. "He had a vision of where his company and the overall industry were going, and yet at the same time he persisted in commanding the critical details of its operations."[15] An independent chairman could think about the future of the energy system and decide whether Exxon should do more in alternative fuels. The descendants of Standard Oil founder John D. Rockefeller want Exxon to do the exact opposite of what their forefather did. If you read " The history of the Standard Oil Company," by Ida Tarbell, the early 20th century muckracker, the picture that emerges is of a titan who had absolute control over his company.[15]
The speakers: Neva Rockefeller Goodwin and Peter O'Neill, members of the Rockefeller family who are pushing for changes in corporate governance at Exxon Mobil, the descendant of the Standard Oil company created by John D. Rockefeller. No family in American history has possessed more wealth, or been more conflicted about the obligations and benefits it bestows, than the Rockefellers, who are now enjoying their sixth generation of good fortune.[1] The Rockefellers are rich, of course, and the rich are different. Their shareholder campaign attracted a lot of attention when they launched it today in the bright penthouse of Le Parker Meridien hotel in New York. There, before a bevy of reporters and cameras and a table laden with fruits, coffee, pastries, and croissants, two descendants of John D. Rockefeller laid out in patrician accents their case for changes at Exxon Mobil in its current incarnation. A majority of Rockefeller family members support four resolutions on global climate change and corporate governance that will go before Exxon Mobil shareholders at their annual meeting in Dallas next month. It is not just the Rockefeller name that is attracting interest but the back-to-the-future aspect of the campaign.[7]
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.[11] 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.[11]
Members of the Rockefeller family are demanding that the company work towards developing renewable fuels as energy costs reach record highs. Much has changed since 1904, when Rockefeller's Standard Oil monopoly was forced to split into 34 separate companies, with Exxon Mobil being the modern day child of two of those companies. Much like its predecessor, Exxon Mobil is the world's largest publicly traded oil company based on market capitalization.[17] Members of the Rockefeller family, whose ancestor founded Exxon Mobil predecessor Standard Oil, are calling for the oil major to split the roles of chief executive and chairman, and to devote greater attention to new types of energy and environmental reforms. Get stories by e-mail on this topic.[18] ' 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.[19]
NEW YORK -- Members of the Rockefeller family are calling on Exxon Mobil Corp. to make governance changes and increase spending on alternative fuels, sharpening the focus on the company's practices as oil soars close to $120.[20] 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.[2] 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.[21] While natural resources were plentiful and cheap in the days of Standard Oil, over a century later the country depends on oil and prices are soaring. Renewable energy sources are quickly becoming the next generation of energy, and fifteen of John D. Rockefeller's descendants are involved in shareholder decisions to force Exxon Mobil to invest in these oil alternatives.[17] Exxon Mobil Corp. was formed in 1999 by the combination of offspring of John D. Rockefeller's Standard Oil Trust. It is now the world's largest publicly traded oil company. UBS Investment Research raised its forecast for the price of natural gas to $9 per 1,000 cubic feet from $7.25 per 1,000 cubic feet.[22] John D. Rockefeller founded the Standard Oil Co in 1870 and it became a precursor to Exxon Mobil. 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 their effect on the environment.[23]
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.[24]
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.[14] 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.[25] 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.[9] 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.[25]
John D Rockefeller's Standard Oil grew to monopolise the industry and the U.S. courts broke it up into 34 separate companies 1911. Exxon and Mobil, which merged in 1999, were each descended from those new companies.[12] 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.[6] The descendants of John D. Rockefeller -- the founder of Standard Oil, forerunner of today's Exxon Mobil Corp. -- are publicly calling on Exxon to change its corporate governance and take a hard look at the future of global energy supplies.[26] Exxon Mobil is a descendant of John D. Rockefeller's Standard Oil, the first modern multinational, founded in 1870.[7]
The name of John D. is being invoked to press Exxon Mobil to devote more resources to finding energy alternatives to oil and natural gas, for the long-term benefit of the company and shareholders, as well as for the environment.[7] Goodwin, who is co-director of the Global Development and Environment Institute at Tufts University, noted that John D. Rockefeller's genius was in recognizing kerosene as the "alternative energy" of the 19th century, replacing whale oil. "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," she said.[7] The Rockefeller's said the company was too focused on short-term windfalls. They said the company's reluctance to invest in alternative energy could result in lost profits down the road. Neva Rockefeller Goodwin, great granddaughter of John D. Rockefeller and a Tufts University economist, called on Exxon to reconnect with the forward-looking vision of her great grandfather. "Kerosene was the alternative energy of its day," Goodwin said.[20] "Part of John D Rockefeller's genius was in recognising early the need and opportunity for a transition to a better, cheaper and cleaner fuel." Ms Goodwin, now an economist and environmentalist, added that Exxon was blinkered in its short-term pursuit of profits "from investments and decisions made many years ago, focusing on a narrow path that ignores the rapidly shifting energy landscape around the world, including developing nations".[12]
The Rockefellers, of all families, should know that Exxon Mobil is unlikely to have much success ushering in a new energy paradigm that will change the world for the better. Virtually all the good works conducted by John D. Rockefeller, and by his descendants, have been done by the nonprofit foundations and philanthropic institutions he created, not by the efficiency-seeking, for-profit machine he built.[1] Don't bite the hand that feeds you. John D. Rockefeller founded the company that 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.[27] Earlier today, my colleague Douglas McIntyre argued that the Rockefeller family shouldn't "bite the hand that feeds" it at Exxon Mobil Corp. (NYSE: XOM ), a company founded by ancestor John D. Rockefeller.[28]
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.[6] A majority of 300 adult members of the wealthy Rockefeller family, influential shareholders of Exxon, voted to support four shareholder resolutions at the company's annual meeting in late May.[26]
Despite negative acts by some Rockefellers (such as creating the fossil fuel industry as we know it), I do think it is very promising that there are family members who are now taking a public stand against what ExxonMobil is doing. This will encourage other shareholders in the company to take a stand as well. The WSJ goes into this a bit, discussing how the last years shareholder resolution to establish and independent chairman at ExxonMobil won 40% of shareholder votes. The article specifically talks about how this may encourage the Ford Foundation or Harvard College to take a stand. Students at Harvard College may want to look into some campaign work around this (for reference, the Sustainable Endowment Institute is all about this sort of work).[14] 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.[9] 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."[21] Neva Rockefeller Goodwin, John's great granddaughter, yesterday accused Exxon of "focusing on a narrow path that ignores the rapidly shifting energy landscape around the world". Peter O'Neill, head of the Rockefeller family committee dealing with Exxon and great, great, grandson of John, added: "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."[29]
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.[10] I left with the sense that in the Rockefellers' eyes, Exxon Mobil's management is as much guilty of poor manners as it is of poor corporate governance. When Rex Tillerson was tapped as the new CEO, about two-thirds of the adult Rockefeller family members wrote him a letter, which welcomed him and asked for a meeting with him and the board. "He was not responsive to that," Neva Rockefeller Goodwin said. At another point, David Rockefeller brought his daughter to lunch with Tillerson and outgoing CEO Lee Raymond. "But I was told I had to behave myself and not say much," she said. The board and Tillerson have brushed off family requests to engage on these issues.[1] The oil industry was created by a dry-goods merchant in Cleveland, not by whale-oil harvesters in New England. In his engaging memoir, David Rockefeller notes that modesty and a relentless focus on behaving appropriately were significant'''at times overwhelming'''parts of the Rockefeller inheritance. Those were on full display here. When asked how many shares of Exxon Mobil the family held, Neva Rockefeller Goodwin said she had no idea.[1]
Peter O'Neill, head of the Rockefeller Family committee dealing with the Exxon situation, compared the situation to a new war. Exxon is 'fighting the last war and they're not seeing they're facing a new war,'' O'Neill said. Goodwin reminded Exxon that by taking a forward looking approach now, they would be following in the footsteps of her great grandfather. 'Kerosene was the alternative energy of its day when he realized it could replace whale oil,' Goodwin said. Exxon's annual meeting is scheduled for May 28, and is scheduled to report its quarterly results before the start of trading on Thursday.[17] "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," Peter O'Neill, head of the Rockefeller committee dealing with Exxon told reporters in New York.[12]
ANALYST TAKE: Goldman Sachs analyst Arjun N. Murti on Tuesday raised his outlook on the integrated oil sector to "Attractive" from "Neutral," saying that the "risk/reward relative to current and expected oil prices has become very attractive." WHAT'S AHEAD: Despite its heft, Exxon Mobil still must struggle to find enough new deposits of oil around the world to replace what it produces each year. The company recently said it expects to invest between $25 billion and $30 billion on capital and exploration projects this year, up from about $21 billion in last year, because of the increased cost of finding new energy supplies.[30] Oil companies have become used to heavy scrutiny. They have hired plenty of lobbyists and supported trade groups, such as the American Petroleum Institute, in their efforts to get their best talking points to the fore. Food companies may soon find themselves redoubling similar efforts of their own. As prices soar into uncharted territory, commodity producers may still wonder about whether their carefully honed strategies to defuse public anxiety will work this time. Exxon Mobil is due to report first-quarter earnings Thursday, following very strong earnings reports Tuesday from two European heavyweights, BP PLC and Royal Dutch Shell PLC. In advance of Exxon's disclosure, company spokesmen were hammering out possible responses to questions they might face about the sheer size of the company's profit, which totaled $40 billion last year. "It's not the only question that people ask," said Exxon spokesman Gantt Walton. "But it is one of them."[31]
Thanks to soaring oil prices, that is considerably more than the company earned a year earlier, and could even top Exxon Mobil's own record for the biggest quarterly profit in U.S. history.[24]
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.[11]
The family members will urge other shareholders to back the resolutions, Peter ONeill, head of the familys committee dealing with Exxon Mobil issues told Bloomberg. He said the company isnt doing enough to prepare for climate change and its implications for fossil fuels.[18] 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.[21]
Fifteen descendants of the oil baron are involved in four shareholder resolutions seeking changes at Exxon, including dividing the CEO and chairmanship positions held by Rex Tillerson. Peter O'Neill, great-great-grandson of Rockefeller, said 66 of the 78 adult Rockefellers currently supported their stance.[20]
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.[9] "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.[32] 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.[33] 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.[25] EVEN THE ROCKEFELLERS WANT CHANGE - Back in the day, John D. Rockefeller was big oil. Today, his descendants still own a fair chunk of ExxonMobil and they're not happy with the company's level of involvement in researching alternative energy sources.[34]
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.[9]
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.[5] The mixture of modesty, politesse, and concern for the world that has characterized the Rockefeller brand for more than a century was on full display. The Rockefeller family members were far less slick and comfortable at the podium than the executive (Stephen Heintz, president of the Rockefeller Brothers Fund ) and politician (Connecticut Treasurer Denise Nappier ) who accompanied them. Neva Rockefeller Goodwin, a daughter of David Rockefeller and hence great-granddaughter of John D. Rockefeller, is a Tufts University economist who elides the Rockefeller out of her professional name. She sported a blue sweater, glasses, and an unfussy mane of graying hair. Peter O'Neill, a great-great-grandson of the original, had a pen protruding from his shirt pocket. These are people who were bred not to raise their voices too forcefully in public or to brandish the family name as a weapon. Their modest delivery makes self-important pronouncements seem nonthreatening.[1] 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.[35]
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.[9] 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.[9]
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.[3] The news conference came a day before Exxon Mobil is expected to report a blowout first quarter on higher oil prices. The Rockefellers were careful to emphasize that they were pleased with Tillerson and the recent performance of the company and the stock price.[7]
Just one day before Exxon Mobil was expected to unveil the biggest quarterly profit in U.S. corporate history, the company's founding Rockefeller family gave warning that it was falling behind competitors in key areas of renewable technology such as wind and solar power.[29] Exxon Mobil, the world's biggest oil company, is expected to report first-quarter profits of about $12 billion (£6.05 billion) today, narrowly beating the record U.S. quarterly profit of $11.7 billion it set in the last quarter of 2007.[29] OVERVIEW: Skyrocketing crude prices have led to handsome profits for oil producers, and none has done better than Exxon Mobil, the world's largest publicly traded oil company.[30]
In Los Angeles, self-service gasoline tops $4. This time around, congressional committees -- eager to denounce runaway prices -- continue to call energy-company executives to Capitol Hill to answer for the run-up. Executives at Chevron Corp., Exxon Mobil Corp. and other major oil companies have gotten better at making their cases. Their congressional testimony argues that energy companies need healthy financial results to continue prospecting for more oil. Executives also are better at deflecting attention from their own companies, arguing that state-owned, foreign oil companies control most of the world's reserves, and that financial speculators play a key role in driving day-to-day prices.[31] 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.[24] NEW YORK (Associated Press) - On Thursday, Exxon Mobil Corp., the world's biggest publicly traded oil company, will report first-quarter results before the market opens.[36]
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.[6] "When Exxon Mobil does well, so do I and other members of my family," Goodwin says. She and O'Neill said that family members are concerned that the company is not doing enough to prepare for the long term, as some of its rivals have.[7] The Rockefellers could not say how much of Exxon Mobil is owned by family members. It has been estimated that the combined family stake is not very large, but Goodwin said that it "is a significant holding for us."[7]
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.[21] The Rockefellers also say that Exxon Mobil is lagging behind competitors in the growing market for renewable and alternative energy.[16]
In boosting investments in renewables and focusing on climate change, Exxon Mobil wouldn't be succumbing to the sort of mushy, feel-good impulses that emanate from the Rockefeller Foundation, Goodwin and O'Neill argued.[1] Specific family members who are working to create change at Exxon are Neva Rockefeller Goodwin, a great-granddaughter of Mr. Rockefeller, and Peter O'Neill, head of the family committee that meets with Exxon management.[14] Mutual funds and other institutional investors, not individuals, are the company's top shareholders. "We feel tied very closely to this company, and that's 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.[8] Exxon said it supports the Rockefeller's right to use the shareholder proposal process to make the family's views known to other stakeholders. The company has asked shareholders not to support the proposals and said it believes the most effective leadership structure for the current company is for Tillerson to serve as both chairman and CEO.[20] The idea that shareholders should just sit back and let management do whatever it wants couldn't be more wrong. Companies are owned by shareholders and are supposed to be working in their best interests. Despite record profits, Exxon shares have barely budged this year. If the Rockefellers think the company can do better, the company should at least hear them out.[28] 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.[25]
The descendants of John Rockefeller, founder of the Standard Oil Company, which has become Exxon, attribute much of the group's success to the surging price of oil.[29] 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.[4]
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.[32] I am glad to see that the Rockefeller family and a few other far thinking shareholders are finally speaking up about these issues. In spite of some comments to the contrary, it is apparent that losing money or destroying shareholder value is not their intent. Obviously they, like a growing number of us, have come to recognize that there is irrefutable evidence of planetary climate change. Regardless of the source of that change (human caused or not), it is only prudent for companies to take steps to mitigate any potential disruption to their long term financial success.[5]
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.[4] Rockefeller family members that have filed or co-filed shareholder resolutions own a total of about 332,000 shares, Walton said.[8] The family members announced on Wednesday - a day before Exxon releases its first quarter earnings - that they are joining other Exxon investors by supporting four shareholder resolutions that will be voted on when the company holds its annual meeting on May 28.[18]
As the world's biggest publicly traded company--and biggest nonstate energy producer--Exxon Mobil has long been a lightning rod for critics of many stripes. At its annual meeting, shareholders will be asked to vote on 19 resolutions, most of them concerning the environment and corporate government. Another reason why Exxon Mobil has been a target was Raymond, its longtime leader and an irascible bull of a C.E.O. who cared little about the niceties of corporate P.R. That comes across in one of the arguments for the resolution on an independent chairman, brought by Robert Monks, the longtime shareholder activist, in Exxon's own proxy. It cites part of an exchange between Raymond and the then-state treasurer of Maine, Dale McCormick, at the 2004 annual shareholders meeting.[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.[9] 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."[27] Among the proposals are a call to create an independent chairman position at the company, a resolve to invest in alternative fuels, establish ways to cut greenhouse-gas emissions and another to push for Exxon to see if it should take a more active role in sustainable energy development projects.[18]
Even Exxon, which argues that wind, solar and biofuels will account for 2% of global energy demand by 2030, isn't totally opposed to the idea of alternatives to oil. According to a statement on its Web site, " ExxonMobil is taking to address the risk of climate change. These included working to improve energy efficiency and fuel economy, and groundbreaking research into low-emissions technologies."[28] Shareholders are attempting to push Exxon towards developing energy alternatives by setting up a task force to examine the effects of climate change on poor economies that stand to lose the most from global warming.[17]
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.[25] 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."[14] 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".[35]
When ExxonMobil believes that wind/solar will be PROFITABLE (ask BP about that. ), the Company will invest in those sources of energy. I believe the trust fund parasites of the current Rockefeller family should just continue spending their tax free millions that the old man left to them and leave running an energy company to the experts at ExxonMobil.[28]
ONeill said 85 percent of Rockefeller descendants over 21 years of age support the resolutions. The family members only hold slightly more than 0.0006 percent of the companys 5.4 billion, however their voices as descendants of the founder carry influence within the company.[18] 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.[9] There are 152 descendants of John D., who died in 1937. Seventy-eight of them are over the age of 21, and 66 are supporting the four shareholder resolutions, O'Neill said. The Rockefeller cousins, he said, do both business and philanthropy together and "spend a lot of time" communicating with one another about common interests.[7] Could the Rockefellers possibly be any later to this game? And, do they really believe that Exxon is going to lead the charge into renewables? They should do John D. proud and create a fund that invests in renewable energy. Until the public at-large gets with the program, and I doubt it will any time soon, green energies will resemble your crazy uncle puttering around in his shed occasionally emerging with something interesting yet wholly impractical.[28] "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." The group, which also seeks to establish a task force to study 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.[20]
There Will Be Blood Orange Juice John D. Rockefeller's heirs urge Exxon Mobil to play nicer. This morning, an unusual breakfast press conference was staged in midtown Manhattan.[1]
Sample line: "As the oldest continuous shareholders of the Exxon Mobil corporation, we almost define the long-term investors," said Neva Rockefeller Goodwin.[1] Exxon Mobils board is recommending shareholders vote against the proposal to split the role of chairman and CEO.[37]
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.[33] 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.[9]
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."[32] First of all, corporate governance experts advocate separating the role of chairman and chief executive as a good idea for all companies, not just successful ones. This is a good way to prevent a company from falling under the control of an imperial CEO.[28]
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. [5] Three of the four shareholder resolutions backed by the Rockefellers concern global climate change.[7]
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.[25]
[of[THIS DAY AND AGE! It's environmentally friendly, but also business-savvy. The Rocks see it both ways which will not only help the planet but will ensure Exxon's profitability. By ignoring the 'changing energy landscape' as the Rocks claim Exxon has done, Exxon reduces its capacity for future profits it seems. Not all Rockefellers are evil but likewise not all of them have our best interests in mind.[16] SPENDING ON EXPLORATION & ALTERNATIVE ENERGY - Spending on "capital and exploration projects" is of mild importance to investors, but it has turned into a political football as critics of Big Oil have harped on the "lack" of spending on oil exploration, expanding refineries and development of other energy sources. If Exxon's R&D; and exploration spending can be characterized as "small" relative to its profits, critics will continue to use this as a reason to increase taxes and/or cut tax incentives for oil companies.[34] I can't understand why McIntyre thinks that "developing new forms of alternative energy is essentially the job of smaller companies which will eventually compete with Exxon for business." Other oil companies including BP Plc. (NYSE: BP ) are moving headlong into alternative energy.[28]
Perhaps a somehat larger portion of the companies resources should be directed toward developing alternative energy resourses, especially in light of the rasson some countries are demanding of Exxon.[15]
In a statement yesterday, Neva Rockefeller said, " 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." [16] Exxon Mobil's founding family takes to the media barricades to press changes on the company.[7] The scions of a fortune created in the 19 th century want the company to embrace the 21 st century. They'd like Exxon Mobil to be an agent of change, not an obstacle to it.[1]
Royal Dutch Shell's ( RDS.B ) first-quarter earnings increased 25% to a record $9.1 billion. Chevron ( CVX, Fortune 500 ) and Apache ( APA, Fortune 500 ) are both expected to post huge increases in profits later this week. When Exxon Mobil ( XOM, Fortune 500 ) reports its first-quarter results Thursday, if it doesn't report a record profit, it will come awfully close.[38] The family's intervention came the day before Exxon reports what are expected to be profits of about $11bn (£5.5bn) for the first three months of the year. That figure, the equivalent of £1m every 25 minutes, could match Exxon's own record for the biggest quarterly profit in corporate history, thanks to record oil prices that yesterday stood at $114 per barrel.[12] 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.[35] Environmentalists have long pointed to Exxon as a villain of the climate change debate, since it denied a link between carbon emissions and global warming. Under its current chairman, Rex Tillerson, however, the company has softened its position, and focused on reducing the emissions from its operations.[12] Not to mention the new technological innovations and millions of jobs that have been created all because of the sustainability and concern for climate change. BP is a bad example, a poorly designed business unit will fail no matter what their product or focus is. Exxon is not a very innovative company nor a very adapatable business model so they have the most to lose with climate change.[5] The fund management business led by Al Gore, the former U.S. vice-president-turned-environmental campaigner, has raised $638m (£322m) to invest in companies developing new ways to tackle climate change.[12] David Blood, the former head of Goldman Sachs Asset Management, who is Generation's managing partner, said the new Climate Change Fund would be an activist shareholder in public and private companies.[12] 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.[5]
Whether everyone believes in climate change or not the majority of people do so it is therefore a risk to shareholder value if Exxon does not take a stance.[5]
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.[5] The shareholder resolutions will be addressed at Exxon's annual meeting, scheduled for May 28.[13]
Let's see what happens after the next annual shareholder's meeting. Let's see if they have enough conscience to move away from the greed based "cost-plus" business model which is exploiting rising energy prices to make record profits for Exxon, even though they're not actually doing any extra work.[16] Of the 36 energy companies in the S&P; 500, only five don't pay a dividend. Of the 31 companies that do pay dividends, only three have failed to increase their payouts in the past few years. Chevron and ConocoPhillips ( COP, Fortune 500 ) both pay dividends that yield over 2%. Could these companies afford to pay higher dividends? Probably. I sometimes get the impression that people think oil executives hold clandestine meetings where they unilaterally decide to set the price of oil and gas in order to maximize their profits. After maniacally laughing about how they are gouging the American public, they then go swimming in pools of gold ala Scrooge McDuck.[38] Benchmark crude prices have pushed even higher since then, recently rising to near $120 a barrel. That has led to massive profits for the handful of integrated oil giants _ such as ConocoPhillips in the U.S. and BP PLC and Royal Dutch Shell PLC in Europe _ that have already reported first-quarter results. High crude prices have stung integrated companies on the refining and marketing side of their business, however, because gasoline prices have not kept pace with oil's rapid ascent.[30] Analysts are projecting net income of $11.4 billion. With all this in mind, it wouldn't surprise me to see more politicians and even average Americans call for oil companies to have their so-called windfall profits taxed more heavily.[38] NEW YORK (CNNMoney.com) -- Oil producer BP ( BP ) reported a 63% increase in profits Tuesday to a whopping $7.6 billion.[38] Three months ago, the Houston company set a new record for the largest annual profit _ $40.6 billion _ ever by a U.S. company. Its quarterly figure was a record, too.[30]
Exxon posted the largest ever annual profit by a U.S. company last year and its first-quarter results, scheduled for Thursday morning, are expected to be at or near record levels.[20] Last year, Exxon Mobile posted the largest quarterly profits in corporate U.S. history. Exxon is rolling in dough. You'd think this would keep everybody happy.[16]
' MasterCard's profit more than doubled in the first quarter to $446.9 million from the same time last year, as more customers outside the U.S. used their credit and debit cards for purchases.[19]
The resolution to separate the positions of chairman and C.E.O. is similar to one put forward last year, which received 40 percent of the vote. The Rockefellers said they expected the resolution would do better this year and expressed hope that the board would make changes if the nonbinding resolution received more than 50 percent of the vote. [7] Last year, a resolution for an independent board chairman received 40% support.[11]
I couldn't disagree more. The family is advocating a series of proposals such as creating an independent chairman and pushing the world's largest oil company to be more environmentally friendly seem pretty sensible to me. [28] The family said the company has done much less than others in the oil industry with regard to renewable technologies.[21]
Members of the Rockefeller family also called on the company to give board members more say in how the company is run.[24] If you have strong opinions about what you think the president should do, On Day One, the please visit http://www.OnDayOne.org/ and post what matters to you the most. John D. Rockefeller IV aka Jay Rockefeller moved to WV in the 70's to get his family's money in coal. He's a real loser, gives the world's worst speeches, makes jokes about how rich he is in the poorest state in the U.S. Ha ha When he was governor of WV, he didn't know that people paid income taxes. I could share info about how the Rockefeller family and the money they have in coal and how placing John D. IV in WV to be governor and then Senator was part of a plot to get more coal money, but I will just remind you all that when Rockefeller was Governor of WV he didn't know what income taxes were.[14] The crazy childern need to look at how it all started John D. Rockefeller was a very smart man just look at how much MONEY he made them. Sometimes I think they take it for granted.[15]
The campaign is being led by Neva Rockefeller Goodwin, an economist and great-granddaughter of John D. Rockefeller.[16] 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," Goodwin said.[13]
The oil giant 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,' Rockefeller's great granddaughter economist Neva Rockefeller Goodwin told reporters. [17] "ExxonMobil is profiting in the short term from investments and decisions made many years ago," said Neva Rockefeller Goodwin, John Rockefeller's great- granddaughter.[33]
"We almost define the term long-term investor, " said Neva Rockefeller Goodwin, a great-granddaughter of the company's founder and daughter of David Rockefeller, the former chairman of Chase Manhattan Bank.[7]
Unfortunately, this article didn't focus on the other part of why the Rockefellers want this split. They are looking for a separate chairman that can focus on a new vision for the company - alterantive energy sources.[15]
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.[6] 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.[37] 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.[32] If the Rockefeller family urges action on "climate change" you can bet your wealth that there is much more up to that.[35] In 2006 Senator Jay Rockefeller wrote to Mr Tillerson urging the company to stop funding groups that denied the existence of climate change.[35]
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. [9] Rockefeller descendants sound dangerous and should be investigated. If it is found that this family is attempting to control access to energy resources, which the rest of humanity needs to live and prosper, they should be striped of assets and put in jail. Every one is entitled to their own opinion. Do these narrow minded individuals actually think the waste that the human race creates is good for our planet. They can comment on animals over populating certain habitats, but i wonder if they see the similar effects that humans have on our ecosystems.[35] The Rockefeller family (in an effort to save the goose that laid the golden egg from itself) has moved to limit the power of the CEO and is demanding more responsible corporate governance by the board of directors.[39] The Rockefeller family has previously taken many pro-environment steps, but, of late, the steps are becoming bolder.[14]
The current Rockefeller crop is pushing for alternative fuels as much as splitting the chairman/CEO positions. In doing so, they're showing more Rockefeller business sense than Exxon. [15] The only way for Exxon, Shell & co. to stay in the game is lead the race for new sources of fuel. From what the public can tell, they aren't doing that now, content with record profits that are more and more threatened by Putin, Ahmadinejad, Chavez, et al. It would be a waste of resources to divert management attention to focus more on alternative fuels. Such fuels will be developed as and when market forces dictate.[15]
Shares of Exxon Mobil closed off 1 cent at $92.45 on the New York Stock Exchange.[3] STOCK PERFORMANCE: Exxon Mobil shares dipped shortly after the start of the year, ending the quarter 9.7 percent lower at $84.58.[30]
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.[37] NEW YORK -- Exxon Mobil Corp. reports its fiscal first-quarter earnings Thursday.[30]
O'Neill said the resolutions are expected to be voted on at Exxon Mobil's annual meeting on May 28 in Dallas.[21] Denise Nappier, the treasurer of the State of Connecticut, said Exxon Mobil is the state pension fund's largest single holding, at $300 million.[7]
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.[35] Petrobras is drilling another well in Carioca, and Gabrielli says the company should have a better idea of what's down there in two or three months. A senior Kuwaiti oil official says his country plans to spend $55 billion on oil projects in the next five years.[22] The company's most profitable quarter was Q4 of last year: it had net income of $11.660 billion.[34]
Midwest coal rose to $43 per ton from $37 per ton, and UBS pushed Powder River Basin coal to $18 per ton from $17 per ton. The energy world sat up and took notice earlier this month when the head of Brazil's National Petroleum Agency said a new offshore find could hold an incredible 33 billion barrels of oil equivalent.[22] If one also adjusts for the somewhat smaller bite oil takes out of personal income -- as people have become more energy efficient -- it would take a price of $135 to $150 a barrel to produce the dislocations caused by the 1980s price spike. Another new factor at play: the public's increased familiarity with commodity-price volatility. The sudden price run-ups of the 1970s were especially jarring because they came after at least two decades of relatively stable prices.[31] Rising food prices have touched off riots in Africa, rice-buying stampedes in Vietnam and political upheaval in Haiti. U.S. multinationals haven't been cast as villains in any of these incidents. Adam Sieminski, chief energy economist at Deutsche Bank, has been trying to calculate how much oil prices would need to rise for consumers world-wide to feel as alarmed as they did in 1980, when crude soared to a then-unheard-of price of $40 a barrel. If one adjusts for constant dollars, as measured by the consumer price index, oil at $100 a barrel today would be comparable, he says.[31] Hopefully, the Fed will take a tougher stance on inflation in the next few months in order to strengthen the dollar and remove much of the speculative froth that has pumped up oil prices. That, more than increased taxation on energy companies, is what will get the economy out of the oil slick it's now in. Issue #1 - America's Money: All this week at noon ET, CNN explains how the weakening economy affects you. Full coverage.[38]
Even though many oil companies are reporting record profits, many people forget just how expensive it is for energy companies to engage in the oil business.[38] Instead of bemoaning the amount of profits that oil companies make, people might have been better off investing in more energy firms.[38]
THE MONEY'S IN PRODUCTION - Surging crude prices translate into higher profits for the production or "upstream" operations at oil companies.[34] As the price of crude continues rising, oil industry profits continue soaring to historical records. It is more than disingenuous or even political rhetoric to suggest that Congress has something to do with this.[39] Analysts expect per-share profit to gain 31 percent over the year-earlier period due to skyrocketing crude oil prices.[36]
Scions of the oil tycoon want shareholders to force changes that focus less on profits and more on the future.[40] The oil companies have also been rewarding shareholders with more than strong stock price gains.[38] 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.[25] Oil and natural gas producer Stone Energy Corp. plans to buy Bois d'Arc Energy in a cash and stock deal valued at about $1.8 billion, including debt. Bois d'Arc stockholders will get $13.65 in cash and 0.165 shares of Stone stock for each share of Bois d'Arc they own.[22]
No question that XOM is the epitomy of how a company should be run. Unfortunately, the 96% of the worlds oil reserves are in the hands on government oil co's run by people like Ch'vez that hate XOM. I don't believe that XOM or its siblings will be able to convert into alternative energy co's, its like Philip Morris turning into a health product co.[15] Alternative energy is all well and good but takes expertise and technology the organization possibly does not have at its disposal. Diverting resources away from the extraction of crude would be distancing Exxon away from their core competency. Too many well run organizations have made the mistake of getting away from what it is they do best and Exxon should not be the next to join that list.[15]
ExxonMobil needs to reconnect with the forward-looking and entrepreneurial vision of my great-grandfather. Kerosene was the 'alternative energy' of its day when he realized that it could replace whale oil.[9] Anecdotal: In Germany, 50 years ago, we said the three well run organizations in the world are: The catholic Church, the (former) Prussian Army and the Standard Oil of New Jersey = ESSO = today's EXXONMOBIL.[15] When the U.S. Supreme Court ordered the breakup of Standard Oil as an "unreasonable monopoly" in 1911, it was split into 34 companies.[7]
Just check out the reader reaction to the recently released Fortune 500 list, which has plenty of energy companies on it, and you'll get a taste for how much rancor people have towards oil companies.[38] The industry could be doing a better job of finding new sources of energy to lessen the dependence on oil. Don't get me started on their environmental track records.[38] There's nothing, nothing." Mr. Nader is calling for a new transaction tax on speculative trades, in part because he thinks it would rein in commodity prices. He notes that the major presidential candidates aren't urging anything of the kind. While he is running for president once again, he says he hasn't had much luck finding political talk shows willing to give his views an airing. Energy and food companies may spend less time in the spotlight today because their output commands a smaller share of people's pocketbooks than in decades past.[31] Same same. With something like £50bn of recent hedge fund money pumping up the price of oil, is'nt it time we took oil out of the hands of speculators to end the mad effect the high oil price is having on global inflation.The least we should do is tax their trades to dampen effect they are having on all of us.[25] Oil prices fell sharply earlier in the session after the Energy Department reported a jump in crude oil and distillate fuel inventories last week. In its weekly report, the Energy Information Administration (EIA) said crude inventories rose by 3.8 million barrels, more than double the increase analysts surveyed by Platts expected.[22]
Kuwait produces about 2.7 million barrels of oil a day and exports around 185,000 barrels a day to the U.S., according to the Energy Information Administration.[22]
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. [5] 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.[24] 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.[3] The family, which still owns a substantial, but undisclosed, minority stake in the group called for the appointment of a new independent chairman, which it said would be the best way to shake up the backward-looking senior management team.[29] The family also called for new rules to require an independent board chairman.[11]
"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."[12] The family is calling for an independent chairman and a bigger leadership role for the directors.[35]
The family is also pushing for a bigger role for Exxon's board of directors.[3]
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.[11] The company, of course, argues that the world will need petroleum-based energy for some time to come.[28] I also enjoy Bernie's comment that expressing an opinion equals "running an energy company." Trying to change this argument into why are rich people rich - that's rich. It's about abusing power at the expensive of those below you, and furthering what's in the best interest of few.[28]
Comstock Resources Inc. holds a 49 percent stake in Bois d'Arc and has a shareholder agreement to vote in favor of the deal. KeyBanc Capital Markets analyst Jack Aydin thinks Comstock could be the big winner in the deal - getting $440 million in cash, 5.3 million shares of Stone for its Bois d'Arc stake and effectively owning 13 percent of Stone after the transaction closes. "We believe that Comstock will be more of an onshore E&P; (exploration and production) company with a strong organic production growth profile, considering its underlying onshore asset base (especially in East Texas/North Louisiana)," Aydin wrote in a note to investors.[22] 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.[32] I want to be very clear that as an ExxonMobil shareholder, I have a world of respect for what the company has done well.[9]
While other Big Oil chief executives have lent credence to the idea that global oil reserves are dwindling, ExxonMobil executives say the world has ample hydrocarbon reserves, and supplies are constricted due to a lack of access to those reserves. [32] At the end of the day, we shouldn't emulate Venezuela of all places and slap higher taxes on oil companies just because crude is around $120 a barrel.[38] The shares are being sold in a public offering, New York-based Citigroup said Tuesday Citigroup already has raised more than $30 billion of capital since December. A weakening U.S. economy and rising consumer delinquencies forced CEO Vikram Pandit to rescind assurances earlier this year that the bank didn't need to raise more funds.[19] Over the last five years, Exxon shares have gone from under $36 to more than $90.[27]
Filed under: Earnings reports, Management, Exxon Mobil opnbrktXOMclsbrkt, [[ BP p.l.c. [28] Which leads me to think that Exxon Mobil, while it has genius engineers and managers, must have some pretty thickheaded investor-relations staffers.[1]
SOURCES
1. John D. Rockefeller's heirs urge Exxon Mobil to play nicer. - By Daniel Gross - Slate Magazine
2. ABC News: Oil Clash: Rockefellers Take on Exxon
3. Rockefeller family members urge change at Exxon | Reuters
4. Families in Business - Rockefellers want change at Exxon
5. Environmental Capital - WSJ.com : Rocking Exxon: Rockefellers Back Resolution Pushing Exxon to Go Green
6. reportonbusiness.com: Rockefellers to support splitting Exxon CEO, chairman roles
7. Revolt of the Rockefellers - National Business News - Portfolio.com
8. Charleston Daily Mail - News - Rockefeller kin take Exxon Mobil shareholder fight public
9. Rockefeller Family Members Urge ExxonMobil to 'Reconnect With Founder's Vision' by Appointing Independent Chairman to Tackle Changing Energy Realities
10. Rockefeller family pushing for Exxon Mobil changes - Dallas Business Journal:
11. Rockefellers Want More Green From Exxon Mobil - Forbes.com
12. Rockefeller's descendants tell Exxon to face the reality of climate change - Business News, Business - The Independent
13. Rockefellers Call for Renewable Fuel Strategy at Exxon Mobil
14. Rockefellers Want Change! « It's Getting Hot In Here
15. Deal Journal - WSJ.com : Exxon Mobil: J.D. Rockefeller Is Now Rolling in His Grave
16. Rockefellers Rock Exxon's Boardroom--Not Green Enough | Autopia from Wired.com
17. RTTNews - Global Business News, Business Newswires, Business Articles, News Analysis.
18. Rockefellers Back Accountability, Green Energy Reforms at Exxon Mobil - International Business Times -
19. Around the nation | Chron.com - Houston Chronicle
20. Rockefellers call for change at Exxon Mobil - Los Angeles Times
21. Rockefellers push for more renewables at Exxon Mobil | Cleantech.com
22. Energy Sector Roundup: The oil slide continues - Forbes.com
23. Rockefellers call for change at Exxon Mobil | Markets | Markets News | Reuters
24. KLTV 7 News Tyler, Longview, Jacksonville |Rockefeller kin take Exxon Mobil shareholder fight public
25. ExxonMobil row masks true green dilemma - Times Online
26. Free Preview - WSJ.com
27. Rockefellers should keep their opinions about Exxon to themselves - BloggingStocks
28. The Rockefellers have every right to complain about Exxon - BloggingStocks
29. Rockefellers rock boat at Exxon with call for new chairman - Times Online
30. Earnings Preview: Exxon Mobil likely to post 1Q profit gain | Chron.com - Houston Chronicle
31. Business - WSJ.com
32. UPDATE:Rockefeller Family Supports CEO,Board Chairman Split At Exxon
33. Rockefeller Family:Exxon Ignoring Shifting Energy Landscape
34. ExxonMobil Earnings Preview: Crude Oil's Up Big, So Why Aren't ExxonMobil Shares Surging Too? - CNBC By The Numbers - MSNBC.com
35. Rockefellers urge action on climate change - Times Online
36. On the Watch: Exxon seen posting sharply higher 1Q profit
37. Rockefeller family seeks change in Exxon leadership and greater focus on renewable energy - International Herald Tribune
38. In defense of oil companies - Apr. 29, 2008
39. Moultrie Observer - Rants and Raves for May 1
40. Rockefeller descendants push for reforms at Exxon Mobil
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