The Hess Corp proxy fight has ended with Elliott Management accepting three board seats for its nominees. This agreement sets aside months long conflict over the governance and long-term strategy of the oil firm.
When Elliott Management called out Hess management for needed changes in the company, the oil company has responded by announcing plans to become a purely exploration and production company. Under this plan, the company would be selling off some of its assets and exiting from a number of ongoing concerns. There was also the direct act of removing CEO John Hess of his chairmanship role.
For the given board seets, Elliott is now beholden to support the election of five nominees for directorship from Hess. There was supposed to be an election between competing slates but this showdown was averted with the last minute deal struck between management and activist hedge fund.
According to CEO John Hess, "We believe this is in the best interests of Hess. Hess's future has never been brighter."
Join the Conversation