CalPERS, the largest public pension plan in the United States, announced on Monday its intention to vote against all Exxon Mobil (NYSE:XOM) board members at the upcoming annual meeting on May 29. The decision comes in response to the oil giant’s legal actions against activist investors.
Earlier this year, Exxon Mobil filed a lawsuit seeking to block a vote on a climate proposal submitted by two small activist investors, circumventing the usual regulatory process to thwart similar measures. Despite the withdrawal of the resolution by the investors, Exxon persisted with the lawsuit, seeking legal costs and other remedies.
The company’s approach drew criticism from proxy adviser Glass Lewis, which recommended shareholders vote against re-electing Exxon’s lead independent director, citing what it described as the firm’s “unusual and aggressive tactics.”
With approximately $490 billion in total assets under management, CalPERS is a significant long-term shareholder of Exxon. The pension fund expressed concerns that the lawsuit might deter future shareholder proposals in the United States.
While Exxon garnered support from business lobby groups such as the U.S. Chamber of Commerce and Business Roundtable, who viewed the case as emblematic of activist groups’ influence on the shareholder proposal process, CalPERS remains steadfast in its stance.
Exxon Mobil did not immediately respond to Reuters’s comment request regarding CalPERS’ announcement.
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