XOM

Exxon faces proxy fight launched by new activist firm Engine No. 1

Credit: REUTERS/SERGIO MORAES

Corrects to remove "proxy firm" reference in paragraph 2

Dec 7 (Reuters) - Engine No. 1 LLC, an investment firm newly launched by hedge fund industry veteran Chris James, on Monday asked Exxon Mobil Corp XOM.N to focus more on investments in clean energy and plans to nominate four directors to the oil major's board.

Engine No. 1 said it has the backing of pension investor California State Teachers' Retirement System (Calsters), which has a stake valued over $300 million in the Irving, Texas-based Exxon.

Oil and gas producers, under pressure from investors who want to see the industry operate more cleanly, have announced new emission targets this year even as they slash spending and production following a coronavirus-driven plunge in crude prices.

In the letter sent to the company's board, Engine No. 1 has called on Exxon to add independent directors with diversified energy-industry experience and reduce capex, especially on projects unlikely to break even with sustained low oil and gas prices.

It also suggests the oil major should formulate a plan to invest in growing renewable energy space and realign management incentives.

(Reporting by Arunima Kumar in Bengaluru; Editing by Krishna Chandra Eluri)

((Arunima.Kumar@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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