Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
By Svea Herbst-Bayliss
New York (Reuters) – Elliott Investment Management nominated seven directors to the board of Phillips 66 and laid the basics for changes, including turning off or selling his midstream business, two people who were familiar with the matter.
The activist investment company handed over a participation of 2.5 billion US dollars to the oil raffiner last month and returned a little more than a year for a second campaign after it was made in the end of 2023 an investment of $ 1 billion and was pressed with limited success.
Elliott now wants Phillips 66, which has a market value of 52 billion US dollars, concern its delay course, improve its refinery business and upgrade its board of directors, the company said in a public letter last month. The company’s share price has dropped by 13% in the past 52 weeks.
Elliott nominated powerful managers with investments, financial, legal and energy experiences, the sources and added that seven candidates give the investor flexibility flexibility before planned changes to the board.
The board currently has 14 members, but will shrink to 12 after the company’s annual meeting in May.
A representative of Phillips 66 was not immediately available for a comment, while Elliott refused to make a comment. The sources asked the anonymity to talk about private discussions.
Elliott, which invests 70 billion US dollars, has a strong record in the energy sector and made successful investments in Marathon Petroleum, NRG Energy, Suncor Energy and Hess. All of them were led by John Pike, a partner of the company, which also leads the Phillips 66 campaign and a recent investment of 2.5 billion US dollars in BP in the amount of 2.5 billion US dollars.
The directors’ lines include Pike, Brian Coffman, a former CEO of the Oil and Gas Company Motor Enterprises, Sigmund Cornelius, a former Chief Financial Officer at Conocophillips and Alan Hirshberg, former manager at Conocophillips and Exxon Mobil.
Elliott will disclose a final number of candidates that the proportions can potentially choose if you submit its definitive proxy materials with securities regulatory authorities, the sources say.
Elliott also aims at the company’s corporate governance, namely its classified board. Phillips 66 has failed a handful of paint in recent years to change his charter so that all directors stand for the choice annually. In order to lead the application, 80% of all outstanding shares must participate for the votes for encountering this threshold.
Investors and proxy consulting companies, including institutional shareholders, are generally wrapped in classified bodies, in which only a few directors are elected every year.
