Professor Bainbridge...on law, politics, religion, culture & food

Using 14a-8 to Micromanage

Dale Oesterle posts on the Exxon shareholder meeting:

Everyone is claiming victory after three notable shareholder resolutions failed at the spring Exxon annual shareholder meeting.  The shareholder’s, supported by Rockefeller heirs, attracted close to 40 percent of the votes cast.  One of the resolutions was structural—to separate the positions of Chair of the Board and Chief Executive Officer.  Two of the resolutions were, in essence, on business strategy.  Shareholder want the company to invest in alternative energy sources and research.  As a shareholder I cast my vote with the board; I was part of the “losing side”, the 60 percent majority.  Exxon is an oil and gas company. If shareholder want to invest in other sources of energy, sell their Exxon stock or use their Exxon dividends to invest in alternative energy companies.  Why push Exxon into areas, wind or solar power, in which it has a competitive disadvantage? 

That’s a damn good question.