We thought these guys had learned their lesson on ESG, but apparently not. Our friends at the WSJ editorial board explain the latest development in the NYC Comptroller’s absurd lawsuit attempting to block Exxon from moving its legal domicile from New Jersey to Texas:
Activists with little stake in companies have abused the shareholder proxy process to drive their environmental, social and governance (ESG) political agenda. This includes resolutions requiring CO2 emission cuts and workforce diversity audits. Plaintiff firms and government pension funds are using shareholder lawsuits to shake down companies…
Politicians like Mr. Levine, who oversees New York City’s worker pension funds, worry they’ll have a harder time raiding companies based in Texas.
Glass Lewis and ISS, which control 90% of the proxy advisory market, also fear their power over companies will wane if activists face a higher burden to bring ESG resolutions. The duopoly offers consulting services to businesses on how to win shareholder votes, so the firms profit from more ESG proposals…
Glass Lewis and ISS have been trying to rehabilitate their political image amid stepped-up scrutiny from the Securities and Exchange Commission, state Attorneys General and Members of Congress. But their opposition to Exxon’s move underscores their unholy alliance with progressive activists, government pension funds and plaintiff attorneys.
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