How much does it cost these days to buy three seats on the board of one of the largest oil and gas producers in the world? Better yet, how much does it cost to try and keep those seats from occupancy by an activist investment firm targeting four? If you’re newcomer Engine No. 1, which earlier this month landed three seats at the table of ExxonMobil, you paid $40 million to own a miniscule 0.02% of the energy giant but with Goliath-size plans to completely reshape the company. If you’re Exxon, you paid $35 million more than any usual proxy solicitation. And this was anything but usual. Reese Energy Consulting today is taking a closer look at San Francisco-based Engine No. 1, merely a six-month-old babe that quickly set its sights on Exxon after years of lagging returns, stunning underperformance, and an unconvincing clean energy strategy. In a dramatic upset that “shook” the entire industry, the little engine that could—with its edgy website and Reenergize Exxon campaign—won over shareholders hungry for profound change at what was once the largest company in the world.
What do you think? Learn more about Reese Energy Consulting and our natural gas expertise at www.ReeseEnergyConsulting.com.
Engine No. 1
Engine No. 1 is an impact investment group purpose-built to create long-term value by harnessing the power of capitalism. They believe a company’s performance is greatly enhanced by the investments it makes in its employees, customers, communities, and the environment. We believe that over time the interests of Main Street and Wall Street align, and they can engage as active owners — through the votes they cast, campaigns they run, and investors they bring with them — to create value by focusing on this alignment.