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Posted: May 21, 2025 9:33 AMUpdated: May 21, 2025 9:33 AM
REUTERS: Shareholders Deliver Mixed Verdict in Phillips 66 Boardroom Battle
REUTERS / Tom Davis
Phillips 66 and activist investor Elliott Investment Management each won two board seats in a contentious showdown that played out at the oil refiner’s annual shareholder meeting on Wednesday.
Reuters News Service reports the split decision ends months of escalating tension between the company and the hedge fund, which has pushed for asset sales and improved performance. Phillips 66 has defended its current strategy, arguing that its long-term plan will deliver value to investors.
Elliott nominees Sigmund Cornelius and Michael Heim replaced incumbent John Lowe and company-backed candidate Howard Ungerleider. Meanwhile, Phillips 66 held onto two seats with the election of Robert Pease and Nigel Hearne. Pease had previously been added to the board with Elliott’s support.
“Today’s vote sends a clear message: Shareholders demand meaningful change at Phillips 66,” Elliott said in a statement.
CEO Mark Lashier countered that the results reflected confidence in the company’s strategy: “Our early results do not yet reflect the full potential of our plan or the value inherent in this business.”
Analysts interpreted the split outcome as a sign that investors want reform—but not the full overhaul Elliott had pushed for. The hedge fund had sought to win all four open board seats.
Sources familiar with the vote said Elliott failed to win backing from major index funds but secured about 40% support from Phillips’ employee pension fund.
The vote marks the first time one of Elliott’s U.S. proxy fights has gone to a shareholder vote. The firm has increased pressure on Phillips 66 since building its stake from $1 billion in 2023 to $2.5 billion earlier this year.
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