US energy companies try to prevent investors from nominating directors

In February, four companies in the energy industry, among which Exxon Mobil, failed in their attempt to prevent shareholders from participating in the new rules on the nomination of directors introduced by New York’s pension funds, what means investors will start to present their proposals in the next session of Shareholders’ Meetings.

The Securities and Exchange Commission – SEC – has rejected the request of Exxon, Chevron Corp, AES Corp and Southern Company of not considering the proposals based on the new rules for the nomination of board members.

The decision was a great win for New York City Comptroller Scott Stringer, which manages funds totaling approximately $163.4 billion USD in assets. The company has proposed votes in 75 companies that adopted the new proxy access rules, which makes easier for shareholder groups to suggest their own candidate for the Boards of Directors.