ExxonMobil has reignited its confidence and dominance in the industry. Once the unrivaled leader among private-sector oil companies, it stood tall as the largest of the Western majors with impeccable management. Its exceptional returns on capital and superior stockmarket valuations fueled a sense of superiority among its executives, drawing both admiration and ire. Former CEO Lee Raymond’s bold declaration in 2003 epitomized this attitude, asserting his role as the commander of the company’s success.
However, in recent years, ExxonMobil seemed to have lost some of its bravado. Amidst a period of modest returns from 2016 to 2020, exacerbated by low oil prices, the company faced mounting pressure from climate activists and ESG-focused asset managers. The turning point arrived when Engine No.1, a relatively unknown activist fund, secured a significant victory by electing three climate-conscious directors to ExxonMobil’s board, marking a pivotal moment of reckoning for the company.
2024-05-29 13:25:25
Explore more at www.economist.com