Shareholder Requests Change in ExxonMobil Governance in Order to Prevent Further Loss of Value

For More Information, Contact:
Robert Monks: (202) 434-8723
UK Contact: Chris Matthews/ Chelsea Hayes 44 (0) 20 7357 9477

December 18 2001. Veteran US corporate governance advocate Robert A.G. Monks is taking aim at ExxonMobil's top management and board for its failure to reign in the company's top executive and protect shareholder value from reputational damage.

Robert A.G. Monks, Chairman of LENS Investment Management and Ram Trust Services, announced today that he has filed a resolution calling for a separation of the Chairman and CEO positions at ExxonMobil. Monks said the move was sparked by his growing concern that the ExxonMobil Board of Directors is failing to protect long-term value in the company from Chairman and CEO Lee Raymond's increasingly extreme position and public image.

"In the last year there have been dozens of stories highlighting criticism of the company for its environmental and social positions. Bad publicity destroys shareholder value and Exxon is undervalued compared to its peer group when it should be at a premium. We need to reverse this before investors' holdings feel the effects more," said Monks. "When various key financial newspapers, industry publications and PR journals note that Lee Raymond's antagonistic positions are making the company a target and jeopardizing its reputation, investors should worry that something is wrong. I believe responsible investors are looking increasingly at action to get a positive resolution to these type of issues[taking a lead from the UK's Myners Report which promotes responsible activism]

Monks' resolution argues that Raymond's antagonistic approach to public issues is causing damage to the company's reputation, and that the board, in allowing Raymond to choose extreme and isolated positions, is failing to meet its basic duties. The resolution states:

RESOLVED that the shareholders request the Board to separate the roles of Chairman and CEO and designate a non-executive and independent director as Chairman as soon as possible (without violating current employment contracts).

"Investors should be concerned that the current Board of Directors is doing a poor job of protecting shareholder value," said Monks. "They have a CEO and Chairman who is taking extreme positions on issues, causing the company reputational damage and damaging[?] stock value. There's no need for this company to portray itself as so opposed to issues in the general public interest."

Ram Trust Services owns 125,000 shares of ExxonMobil stock. Monks has been involved for nearly 20 years in asserting the rights and obligations of shareholders to assure that "their" companies operate not only profitably but also in the public interest. His most recent investment experience, the LENS Fund, run on behalf of foreign and domestic clients, achieved over a 10 year period a 26.1% return as against the S&P 500 Index of 18.6%, through investing in businesses which had lost value and working as a responsible shareholder to turn them round.