Exxon investors put exec pay issue above climate

Exxon Mobil Corp. spent much of its annual meeting defending its environmental policy, but shareholders of the world's largest company were more concerned with its executive pay and governance practices.

None of the 15 shareholder proposals that were up for approval at the annual meeting received 50 per cent of the shareholder vote, but four dealing with pay and governance received at least 40 per cent.

All four measures would increase the accountability of Exxon's management and board for their policies and performance.

About 47.8 per cent of the voting shareholders backed a measure that would give holders of 10 per cent of Exxon's outstanding common shares the right to call special shareholder meetings and 47.2 per cent favoured a proposal to allow the company to recoup incentive bonuses it determined not to be justified.

Proposals to give shareholders an advisory vote on executive pay and to split the chief executive officer and chairman positions got 41.2 per cent and 40 per cent of the vote, respectively.

But climate change was the central topic of discussion at the meeting and one environmental proposal - that the company adopt goals for greenhouse gas reductions from its products and operations - received 31 per cent of the shareholder vote.

Exxon chief executive officer Rex Tillerson disputed claims by investor activists and environmentalists that the company is working to mislead the public about the causes of climate change.

"What I find perplexing is why people feel threatened because we want to have a discussion," Mr Tillerson said, when offering an explanation for why the company funds some groups that are sceptical of the mainstream scientific views of climate change.

"I'm not going to just adopt a slogan. If that makes me public enemy number one, so be it," he said.

Investors also voted in all 12 nominees to Exxon's board, including Michael Boskin, who received 93 per cent of the vote despite an effort by a group of investors to unseat him in protest of the company's climate policy.