Report Jan. 5, 2021
Report Jan. 5, 2021
ExxonMobil has a duty to our shareholders to create long-term value while seeking to meet the world’s growing energy needs. Responsible engagement with our shareholders provides an effective forum to address issues and share relevant information, facts and viewpoints. The board has established procedures for shareholders and other interested parties to communicate with board members. Individuals can email our non-employee directors through the corporate governance page of our website. ExxonMobil employees work with directors to respond to letters and emails. Directors will sometimes request that senior managers meet with shareholders to address particular topics.
Every year, shareholders or their proxies submit proposals regarding company operations or corporate governance. Company management and the board consider the proposals, and management typically seeks a dialogue with the proposal sponsor. If the dialogue successfully addresses the shareholder’s concerns identified in the proposal, the proposal is often withdrawn. When discussing with shareholders, we seek to listen actively to their concerns to find common ground, potential for improvement and a better understanding of the issues raised. Visit ExxonMobil’s proxy statement for additional information.
2019 performance and initiatives
ExxonMobil engages with shareholders or their proxies on a range of environmental, social and governance (ESG) issues. In 2019, we held approximately 85 shareholder engagements on ESG issues with institutional investors, pension funds, and labor, religious and nongovernmental organizations. These engagements reached shareholders owning nearly 1.4 billion shares. The number of such shareholder engagements in 2019 has more than doubled since 2014. Participants represented an estimated 58 percent of outstanding stock held by institutional investors and about 34 percent of total shares outstanding. These shareholder engagements can often eliminate the need for more formal shareholder proposals at the annual shareholders meeting.
At the corporation’s 2019 annual meeting, shareholders owning approximately 3.6 billion outstanding shares—or approximately 86 percent— were represented. In 2019, shareholders voted on 10 issues, including seven shareholder proposals. The summary table below shows the results.
2019 Proxy vote summary
|Proxy item||Vote for1|
|1. Election of directors (average)2||>93%|
|2. Ratification of independent auditors2||96.8%|
|3. Advisory vote on executive compensation2||91.6%|
|4. Independent chairman||40.7%|
|5. Special shareholder meetings||42.4%|
|6. Board matrix||29.8%|
|7. Climate change board committee3||7.4%|
|8. Report on risks of gulf coast petrochemical investments3||25.0%|
|9. Report on political contributions||26.1%|
|10. Report on lobbying||37.3%|
2Proposals submitted by the board.
GovernanceGood corporate governance creates a business environment conducive to long-term growth. ExxonMobil employs a variety of policies and processes to uphold high ethical standards and promote transparency. Our efforts are underpinned by a board of directors that provides strategic and independent oversight of our corporation’s affairs.
EnvironmentExxonMobil’s diverse portfolio of projects requires us to work in remote and sensitive environments, including deepwater and areas of high biodiversity. Our environmental management approach is guided by an understanding of the potential environmental and socioeconomic impacts of our operations and a commitment to develop, maintain and operate projects sustainably, using appropriate standards that enable us to ‘Protect Tomorrow. Today.’
SocialAround the world, ExxonMobil aims to be a preferred business partner, neighbor, employer and supplier. We maintain a corporate-wide commitment to safeguarding the health and security of our employees and the public, responsibly managing our social impacts, and upholding respect for human rights in our operations.