Source: Reuters
Marathon Petroleum Corp said on Friday the company’s board supports Gary Heminger as chief executive officer after two of the top 10 shareholders called for his ouster.
Shareholders Paul Foster and Jeff Stevens in a letter on Thursday also backed “the majority” of activist investor Elliott Management Corp’s demands disclosed on Wednesday. (bwnews.pr/2lFV9ck)
Elliott had urged the refiner to split into three companies for retail, refining and midstream assets, saying it would boost shareholder value by as much as $40 billion.
However, the two shareholders said their view is that “Elliott has not gone far enough.”
Elliott was not immediately available for a Reuters request for comment.
Marathon responded to Elliott’s proposal on Wednesday, stating it was focused on increasing shareholder value and would “thoroughly evaluate” the hedge fund’s proposal.
Foster and Stevens, who are former board members of refiner Andeavor which Marathon acquired last year, said they own about 1.7% of Marathon together with their affiliates.
In response, Marathon said the board is firmly and unanimously supportive of Heminger as chairman and CEO and “his track record of delivering value to shareholders and all of the company’s constituencies”.
Heminger’s membership of Marathon’s board of directors is due up for shareholder vote in 2020, according to Marathon’s 2019 proxy statement.
Earlier on Friday, the Wall Street Journal reported about Stevens and Foster’s letter to the board. (on.wsj.com/2nAuoq7)
