Irving's Exxon loses board seats to activist hedge fund in landmark climate vote



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Irving's Exxon loses board seats to activist hedge fund in landmark climate vote

On Wednesday, Exxon Mobil Corp., the Irving, Texas-headquartered American multinational oil & natgas behemoth, had been met with a massive backlash regarding its slated course of action on carbon footprints and future growth, which is thought to have largely hinged on fossil fuels, as Exxon shareholders had voted to inject at least two members nominated by a tiny activist hedge fund - holding around $50 million worth of Exxon stakes - into the oil mogul’s management board , sending shockwaves across a global energy industry which has already been scuffling amid growing concerns associated to climate change impacts.

Exxon Mobil Corp., the 22-year-old Irving-based energy giant, in tandem has a market valuation close to $250 billion as of Wednesday’s market closure, while Engine No. 1, a tiny little hedge fund, nominated directors of which would be seated on Exxon’s management board according to latest Exxon shareholders’ meet, holds about a lumpsum of $50 million worth of stake in the hydrocarbon Goliath as beforementioned.

Aside from that, latest triumph of activist hedge fund Engine No 1 came forth at the same day the environmentalists had dealt a massive blow to Royal Dutch Shell, as a Court in the Netherlands had ordered earlier in the day to expand Shell’s greenhouse gas emission cuts.

Small activist fund deals a major blow to Exxon’s growth plans

Besides, while results of the latest Exxon shareholders’ meet added to further holocaust for the company Chief Executive Darren Woods who has long been arguing that the oil and natgas mammoth ought to focus on fossil fuels to remain profitable, speaking at the end of Wednesday’s shareholders’ meet, Woods said, “We welcome the new directors, Gregory Goff and Kaisa Hietala, to the board and look forward to working with them constructively and collectively on behalf of all shareholders”.

Under the chieftainship of Woods, Exxon stomached more than $20 billion in losses so far and had yet to embark on a lower-carbon investment policy.