News & Events

Corporate Associate Yafit Cohn was quoted in Agenda, a Financial Times service, in an article titled, “Investors Want Oil Giants to Run Out of Gas.” The article discussed the SEC’s recent decision not to grant Chevron and ExxonMobil no-action relief with regard to shareholder proposals demanding that the companies’ boards set a policy to maximize capital returns. The proposals requested an increase in capital returns in lieu of spending on long-term investments, such as oil and gas exploration and R&D, since, according to the proponent, such investments may be blocked by future climate change regulation. The SEC’s response could shape proposals like these in the future, according to Yafit. The SEC’s response “delineates the boundaries” of the prong of the shareholder proposal rule relating to cash or stock dividends, explained Yafit, “in a sense that if the proposal does not purport to require a specific amount of [dividends and buybacks]” but is “just asking that the company increase the total amount of [dividends and buybacks] . . . it would be completely acceptable in the SEC’s eyes.” Yafit noted that “other shareholder proponents who are focused on climate change would definitely capitalize on” the SEC’s guidance. 

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