New York State's comptroller and four other Exxon Mobil shareholders reportedly asked the U.S. Securities and Exchange Commission this week for help. The action is said to compel the oil producer to include a climate change resolution in its yearly shareholder proxy.
According to Reuters, the move, which is considered first since the Paris climate agreement, creates a tension between the world's largest publicly traded oil company and a growing chorus investors concerned with the issue of climate change. It is also dealing with the legislation designed to curb it will harm Exxon's ability to operate with profit.
It has also been brought up as Exxon is fighting an investigation by the New York State's attorney general. Exxon's inquiry emerged as it was questioned whether it misled the public and shareholders about the risks of climate change.
The New York City officials have also started on efforts to force greater climate disclosure by Exxon. Jutia Group claimed that Exxon Mobil Corporation with a current value of $337.29B, opened at $79.91. Nowadays, the pricing rate has been between $79.67 and $81.44 share with a year range of $66.55 to $90.09.
But XOM's shares currently rates at $33.02x with this year's declared earnings, which makes them relatively expensive compared to the industry's $17.02x earnings multiple. But the company still pays the shareholders with $2.92 in every share annually in dividends, and this allegedly yield 3.54%.
Just last month, Exxon told SEC it intended to halt a vote on the resolution at its yearly meeting this May. It also claimed that it was vague and sought for metrics that are hard to quantify. It is also not uncommon for companies to try to block shareholder resolutions if executives see that these resolutions have little to do with the main operations.
Business Insider, moreover, reported that the New York State Comptroller Thomas DiNapoli. As mentioned in a filing with the SEC that the information is crucial to help in making an informed ruling about whether or not to invest in the oil company. He is also said to oversee the state's $178.3 billion pension fund.
Meanwhile, Exxon and the SEC failed to comment about the climate vote. But the SEC is likely to issue a decision before Exxon sends it proxy materials to shareholders later this spring.
