June 15, 2023 | Editor: Martin Wennerström
Exxon and Chevron AGMs
reject climate proposals
The AGMs of Exxon Mobil and Chevron have rejected a slew of climate-themed shareholder proposals, signaling a setback for activists pushing for more aggressive emission reduction targets. Exxon shareholders rejected all 12 climate-related resolutions put forward by investors, including calls for the company to align its business with the goals of the Paris Agreement. Similarly, Chevron shareholders rejected three proposals to cut emissions and increase transparency. The shareholder votes contrast with those at European oil companies, where climate-themed resolutions gained more support.
Comcast shareholders reject ESG resolutions
Comcast shareholders have rejected a proposal requesting short- and longterm GHG reduction targets, as well as a resolution requesting a report on the impact of climate-related risks on its default retirement savings plans. In addition, a proposal requesting a report on political contributions and their alignment with the company’s values and practices failed to gain support among shareholders. Earlier this year, Comcast asked the SEC for a no-action relief if it omitted the shareholder proposal on climate risks in default retirement options. The company argued that the proposal concerns “ordinary business operations” and that the board is thereby not responsible for the management of the plans.
Corporate Secretary | Bloomberg | Edie | SEC
Netflix say-on-pay vote fails at
AGM
Netflix shareholders have rejected a non-binding proposal on executive compensation. According to company documents, CEO Ted Sarandos could earn up to USD 40 million in 2023, including annual incentive and equity compensation, while new co-CEO Greg Peters could receive close to USD 34 million. Prior to the AGM, the Writers Guild of America had urged the company’s shareholders to oppose the say-on-pay proposal in solidarity with the Hollywood writers’ strike. The 2022 AGM also saw high dissent on remuneration practices, with only 27% of votes cast in favour of the say-on-pay resolution.
Please note: This is the final standalone issue of the Governance in Brief newsletter. Starting June 22, 2023, the Governance in Brief content will be included in our bi-weekly newsletter for institutional investors, The Whole Picture. If you are a subscriber to Governance in Brief, you will automatically receive The Whole Picture on June 22 and do not need to take any action. If you do not already receive Governance in Brief and wish to subscribe to The Whole Picture, you may do so at www.sustainalytics.com/the-whole-picture. Thank you for your interest in our corporate governance research. Please contact [email protected] if you have any questions.
Recent Content
Governance in Brief – June 8, 2023
European Parliament approves CSDDD The European Parliament has approved the “Corporate Sustainability Due Diligence Directive.” Under the new rules, companies will be required to identify and address the negative impact of their activities and value chains on human rights and the environment. Additionally, companies will need to implement climate transition plans, and, in the case of companies with more than 1,000 employees, tie directors' variable compensation to target achievement.
Governance in Brief – June 1, 2023
Citigroup to IPO Banamex after Mexican gov’t interventions hamper sales deal Citigroup has announced a plan to spin off its Mexican business, Banamex, after a failure to sell the unit to conglomerate Grupo Mexico. Citigroup had been in talks with German Larrea, CEO and Chairman of Grupo Mexico, for over a year in an attempt to orchestrate the sale of the bank, which was first announced at the start of 2022.
Governance in Brief – May 25, 2023
Activist investor pushes for leadership and strategy changes at NRG Energy Activist investor Elliott Investment Management has disclosed a 13% stake in the US-based NRG Energy and called for leadership and operational changes at the company to remedy its “meaningful underperformance.” The investor urged NRG to add independent directors with experience in the power and energy sector to its board, noting that it has already identified five executives to guide the operational and strategic changes.