Investors are seeking to overthrow Exxon’s board of directors in an attempt to reign in massive spending plans, according to reports.
The push is being led by an investment firm called Engine No. 1, according to CNN Business.
Engine No. 1 has reportedly lined up four individuals who have agreed to fill seats on the Exxon Board of Directors “if necessary.”
For the first time in modern history, Exxon faces a credible challenge from frustrated investors seeking to overthrow its board of directors.
The investment firm reportedly has support from the Church of England and the California State Teacher’s Retirement System.
“Historically Exxon hasn’t had to care too much about shareholders. Now they’ve got people rattling their cage,” said Third Bridge Group Analyst Peter McNally, according to CNN Business.
Exxon has reportedly lost $266 billion in market value since 2014.
The company was reportedly dropped from the Dow Jones Industrial Average after 92 years as a part of the index.
“For the longest time, Exxon was a machine. They were just churning out cash flow year after year,” CFRA Research Analyst Stewart Glickman reportedly said.
Shareholders have reportedly expressed skepticism related to Exxon’s climate initiatives.
Investors are seeking to force the company to disclose emissions targets, analyze its climate risk, and separate the CEO and chairman positions, among other issues, according to CNN Business.