By Ross Kerber
(Reuters) – Vanguard said its funds supported the election of Exxon director nominees at its annual meeting last week, but the mutual fund giant cited lingering concerns about the energy company’s prosecution of climate activists.
All 12 of the company’s directors were re-elected at the company’s annual meeting on May 29, including Exxon chairman Darren Woods and lead director Joseph Hooley. Both were challenged by environmental activists after Exxon refused to settle its lawsuit against proponents who had introduced a climate measure at the meeting, even after they abandoned it.
Vanguard, based in Pennsylvania, cited Exxon’s decision in a recent note posted on its website.
“While the company’s decision to continue to pursue the process gives us some pause, given the potential chilling effect on future shareholder proposals, we see at this time no evidence that the (Exxon) board oversaw actions that negatively impacted shareholder returns. “, wrote Vanguarda.
A Vanguard spokesperson declined further comment.
An Exxon representative said the proponent of the now-withdrawn resolution “did not admit that his proposal violated SEC rules. This is the central issue in our process: seeking clarity in the SEC’s proxy rules… and thereby promoting a environment for open and meaningful dialogue with shareholders.”
(Reporting by Ross Kerber; Editing by Richard Chang)
