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Takeaways from the Key Takeaways
- Phillips 66, a refiner of oil, announced on Wednesday that it would be naming two new directors to the board as its proxy battle with activist Elliott Investment Management continues.
- The two new candidates are A. Nigel Hearne, currently the chief operating officer of Harbour Energy, and Howard I. Ungerleider, a former president and chief financial officer at Dow.
- Elliott filed a suit against Phillips 66 on Tuesday, seeking to have four board positions put up for voting during the company’s annual shareholder meeting.
Oil refiner Phillips 66 said Wednesday that it has nominated two new directors for its board of directors, as its proxy war with activist Elliott Investment Management is continuing.
The two new candidates are A. Nigel Hearne, currently the chief operating officer of Harbour Energy, and Howard I. Ungerleider, a former president and chief financial officer at Dow. These two candidates are in additions to the existing nominees, Robert “Bob” W. Pease and John E. Lowe. The oil refiner confirmed that Pease is a director who has been identified as a partner with Elliott.
Elliott on Tuesday filed a lawsuit against Phillips 66 and its board seeking an order for four board seats to be up for voting at the company’s next annual shareholder meeting, saying it wasn't given information on how many seats would be up for election.
Elliott had previously selected its own directors.
"After careful consideration of Elliott’s nominees and several conversations with Elliott’s representatives over multiple years, we have determined that the dissident nominees do not possess skills or experiences not represented on the Board already or that would directly drive further shareholder value creation,” the lead independent director of Phillips 66's board, Glenn F. Tilton, said Wednesday. “Further Elliott’s inconsistent approach and changing demands would introduce unwarranted risk by prioritizing uncertain long-term gains over an disciplined, longer-term strategy.”
Elliott held a 5.7% interest in Phillips 66 on March 24, 2025. Phillips 66’s shares were up about 1% in intraday trade Wednesday. They have lost more that 18% in value over the last 12 months.
