PRESS RELEASE
In-house voting platform for retail shareholders will suppress votes of institutional investors calling for change
Wall Street’s regulator SEC will not block Exxon’s plan to build an in-house voting platform for retail shareholders, the Financial Times reports today. Under the plan, retail investors who opt in would have their AGM votes cast in line with board recommendations by default.
“Exxon’s retail voting platform appears to be another attempt to suppress the voices of critical investors, following Exxon’s unprecedented lawsuit against shareholders in 2024,” responds Mark van Baal, founder of activist shareholder Follow This. Exxon sued Follow This for filing a shareholder proposal requesting emissions reductions.
“If management can auto-capture retail votes, active investors lose influence when change is needed.”
Retail investors hold about 40% of Exxon’s shares, a large pool that often goes unvoted. “Under the guise of participation, Exxon tries to capture the votes of shareholders that normally don’t vote.”
“Obviously, the goal is to suppress votes for change as Exxon wants to continue with fossil fuels for as long as possible. This will not go down well with institutional investors who will lose influence as owners of the company.”
“Boards that do not want to listen to critical voices, specifically of shareholders, become myopic and risk the future of the company.”
Previous administrations and SEC have resisted – because it is likely handing too much power to boards of companies. “Exxon seizes the opportunity of a fossil fuel friendly administration and regulator to use the votes of silent shareholders against vocal ones.”
Follow This calls on institutional investors to speak out against this dilution of their influence.
Read the full story in the Financial Times
