OSLO, (Reuters) – Norway’s $1.6 trillion sovereign wealth fund said yesterday it will vote against the reappointment of U.S. oil giant Exxon’s lead independent director, Joseph Hooley, due to the company’s lawsuit targeting climate activist investors.
Exxon’s case against two small investor groups has raised alarm among activists, proxy advisers and some shareholders who argued it would muzzle debate at public companies.
“Norges Bank Investment Management continues to place utmost importance on the protection of shareholder rights and raises concern around the potential impacts of litigation against shareholders stemming from the submission of a shareholder proposal,” the operator of the Norwegian fund said.
NBIM is Exxon’s 6th biggest shareholder according to LSEG data with a stake of 1.23%.
Shareholder proxy advisor Glass Lewis earlier this month recommended investors vote against Hooley at Exxon’s May 29 AGM, citing what it called the company’s “unusual and aggressive tactics” in pursuing a lawsuit against activist investors.
Exxon has said securities regulators have allowed too many resolutions to come to a vote, costing companies money, and that it hopes its lawsuit will help bring about reform.
Norges Bank Investment Management will also oppose the re-election of Exxon Chair Darren Woods due to his dual role as CEO. The Norwegian fund believes that as a matter of principle the two positions should not be held by the same person.
The Norwegian fund has oppos-ed the election of Woods to the board every year since 2017.
