Pensions & Investment Research Consultants (PIRC), a governance advisor, has recommended Chevron Corp’s shareholders to vote against the company’s CEO Michael Wirth at the upcoming shareholder meeting.
PIRC’s recommendation is such since Wirth is the company’s CEO as well as the board’s chairman.
Chevron, the second biggest U.S. oil producer, has several proposals on climate and governance which London-based PIRC said it supports.
Case in point: Chevron has pledged to limit the pace of growth of its carbon emissions that contribute to climate change, but has yet to set longer-term targets to achieve net zero, as many of its European rivals have done.
In a statement, Chevron’s spokesman Sean Comey said, its directors recognize the importance of independent oversight and have “structures and practices to enhance such oversight” including selecting a lead director from among themselves when the CEO is selected as chairman.
“The role of the lead director is highly empowered,” said Comey.
PIRC recommendations includes asking the company to reduce its greenhouse gas emissions of its products, become a public benefit corporation, report on how net zero scenarios would impact business, increase reporting of information on lobbying, and split the role of the chairman and CEO after the next chief executive transition.