In a bold move, Hess Corp would be splitting the roles of chairman and chief executive officer in its annual shareholders meeting next week. This comes as a move to address the criticism from activist shareholder Elliott Management.
The oil company tapped former General Electric Vice Chairman John Krenicki for the positionof non-executive chairman. His nomination would be up for confirmation during the shareholders meeting to be held on May 16 at Houston, TX.
To this, current Chairman and CEO John Hess, according to Hess management, 'stated his full support for the decision.'
This was seconded by lead director John Mullin, who said, "Based on strong leadership qualities and unimpeachable independence, the board believes that (Krenicki) - along with Hess' other director nominees - has the right blend of experience and sound judgement to provide accountability, while guiding Hess' transformation to provide accountability, while guiding Hess' transformation to a pure play E&P company for the benefit of all shareholders."
Hess and Elliot have been locked in a protracted proxy battle where the hedge fund has called out the company's management and its current directors. Hess for its part has questioned the independence of Elliot's nominees.
Join the Conversation