Phillips 66 nominates four executive directors amid escalating proxy fight with Elliott

Published 26/03/2025, 12:44
© Reuters.

Investing.com -- Phillips 66 (NYSE:PSX), an energy company, announced on Wednesday the nomination of four executives for election as directors at its forthcoming annual shareholders’ meeting. This move comes amid an intensifying proxy battle with Elliott Investment Management, an activist investor.

The nominees include John E. Lowe and Robert W. Pease, both of whom are currently serving as directors. Phillips has also named Nigel Hearne and Howard I. Ungerleider to replace Gary K. Adams and Denise L. Ramos, who are set to retire from the board.

On Tuesday, Elliott, which holds a $2.5 billion stake in Phillips 66, filed a lawsuit against the company. The investor is seeking to have four directors stand for election at this year’s annual meeting. Earlier in the year, Elliott had already nominated seven directors to the company’s board.

The board of Phillips 66, which currently consists of 14 members, will reduce to 12 after the company’s annual meeting in May.

In other news, the company disclosed that its CEO, Mark Lashier, received a compensation of $22.6 million in 2024, marking a 16.4% increase from the previous year.

In connection with its impending 2025 Annual Meeting of Shareholders, Phillips 66 has filed preliminary proxy materials with the U.S. Securities and Exchange Commission.

In the filing, the board of directors of Phillips 66 announced the nomination of two new candidates, Hearne and Ungerleider, both of whom bring critical financial and operational capabilities to the board. The board also reiterated its unanimous support for the company’s strategy to drive compelling, consistent returns for shareholders through operational excellence and effective capital allocation.

Glenn F. Tilton, the board’s lead independent director, emphasized the board’s commitment to evaluating the portfolio and strategic alternatives to maximize long-term shareholder value. He also highlighted the board’s readiness to engage constructively with Elliott when the investor is prepared to do so.

Phillips 66 is seeking shareholder approval at the 2025 Annual Meeting for a proposal to declassify the board by amending the company’s certificate of incorporation and by-laws. This proposal has been put forth five times over the past decade. Elliott, on the other hand, is requesting shareholder approval for the board to adopt a policy requiring the annual resignation of all directors. The board urges shareholders to vote against Elliott’s proposal and in favor of the management’s proposal.

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