Another proxy advisory firm on Thursday recommended shareholders vote to split the top leadership roles at Exxon Mobil Corp., joining a growing chorus of dissidents calling for change at the world's largest publicly traded oil company.
In its recommendation, Proxy Governance Inc. said it does not typically support proposals to mandate separate chairman and chief executive roles, which are currently shared by Rex Tillerson.
However, "specific circumstances at Exxon Mobil, especially an apparent breakdown in communications with major shareholders at a time when the company faces major strategic decisions, warrant support for this proposal as a way to signal to the company's board that an independent chair would be beneficial," the firm said.
Irving, Texas-based Exxon Mobil's board opposes splitting the roles. In a recent proxy statement, the board said it believes the most effective leadership structure is for Tillerson to remain both chairman and CEO.
A spokesman for the company declined to comment further when asked about the latest recommendation.
Descendants of John D. Rockefeller, the founder of Exxon Mobil predecessor Standard Oil Corp., and other prominent shareholders have been calling for a separation, with some arguing that Exxon Mobil is too focused on short-term gains.
Separating the leadership roles will better position the company to face future challenges, those shareholders argue. Proxy Governance sounded a similar theme in its recommendation.
"Exxon Mobil appears to need a vision for the future that transcends engineering excellence, conservative accounting, rigorous cost discipline and a tough 'my way or the highway' leadership style," the firm said.
Scott Fenn, managing director for policy at Proxy Governance, said the firm did not support a similar proposal to split the leadership posts last year, but did so now because it feels this is a "critical time" for Exxon Mobil.
"The company's kind of in a state where it has to make some really important decisions about its future," he said, adding that the firm believes Exxon Mobil's current business strategy is ultimately not sustainable despite the near-term boom from soaring energy prices.
Oil prices surged to a record near $127 a barrel earlier this week.
On Tuesday, proxy advisory firm Glass, Lewis & Co. added its support to the effort, saying that an independent chairman would be better able to oversee the company's executives and "set a pro-shareholder agenda without the management conflicts that a CEO or other executive insiders often face."
Exxon shares rose $1.39 to close at $91.30.
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