Exxon said nine of its slate of nominees won election to the board, which consists of 12 directors.
“We look forward to working with all of our directors to build on the progress we’ve made to grow long-term shareholder value and succeed in a lower-carbon future,” said Darren Woods, chairman and CEO of ExxonMobil. “We thank all shareholders for their engagement and participation, and their ongoing support for our company.”
“We are grateful for shareholders’ careful consideration of our nominees and are excited that these three individuals will be working with the full board to help better position ExxonMobil for the long-term benefit of all shareholders,” Engine No. 1 said in a statement Wednesday.
During the five years prior to the pandemic, Exxon’s total return (including dividends) fell by 17.5%, according to Engine No. 1. That was easily last among the five biggest oil companies over that span, with Exxon the only one suffering a loss. The S&P 500 surged nearly 80% during the same time frame.
However, Exxon has rebounded in 2021 as oil prices have climbed. The share price is up 41% this year, nearly quadrupling the S&P 500’s advance. Still, Exxon remains far from the record highs hit in mid-2014.
Although Engine No. 1 holds just 0.02% of Exxon’s shares, the hedge fund won backing from major institutional investors.
Institutional Shareholder Services advised shareholders to vote in favor of three of Engine No. 1’s candidates. Citing Exxon’s “questionable strategy” for the future and “diminishing returns,” Glass Lewis, another influential advisory firm, urged shareholders to back two of the four candidates.