{
  "docId": "019de071-041e-72bc-a4a4-b0331dc0dafb",
  "docSlug": "8f2bf126f524c30adef79c8d33966ec8",
  "documentTitle": "Engine No. 1 | Activist Presentation Deck | 83 slides",
  "authorId": "engine-no-1",
  "authorName": "Engine No. 1",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2021-05-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 66,
  "pageCount": 83,
  "prevPage": 65,
  "nextPage": 67,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "Uses a specific case study of 2018/2019 metric changes to illustrate governance failure.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de071-041e-72bc-a4a4-b0331dc0dafb/66",
  "deckHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb",
  "deckJsonHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb.json",
  "deckAnchorHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb#slide-66",
  "components": [
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.58
      },
      "kind": "list",
      "text": "These changes were followed by heavy investment in projects that delivered a low average return, negative FCF, increased doubt regarding ExxonMobil’s dividend sustainability, and negligible share repurchases",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "16bcda9a-d865-4ef7-a493-253daf4d3160",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.18
      },
      "kind": "list",
      "text": "Metrics are not assigned specific weights using a pre-set formula, allowing for ad hoc changes including alteration of key compensation metrics",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "27048f85-902e-4d7a-ae4d-425c9d11e03b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.45
      },
      "kind": "list",
      "text": "Likewise, the Board in 2019 gave “additional emphasis” to the Company’s “progress towards strategic objectives, which included a strong focus on the Company’s growth strategy”",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "89ebbb14-edfe-4755-bb4b-aec5408f01c6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.28
      },
      "kind": "list",
      "text": "For example, as ExxonMobil created aggressive new growth plans in 2018, the Board removed ‘Free Cash Flow’ and ‘Shareholder Distributions’ as metrics, noting that such metrics could “discourage investment” and replaced them with ‘Cash Flow from Operations’ and ‘Asset Sales’",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "971fe470-6f8e-4982-9989-a2559b8eabdb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.7
      },
      "kind": "list",
      "text": "Peers – Chevron, BP, Shell, Total, ConocoPhillips, Occidental, Pioneer, and EOG – clearly lay out a management scorecard that has well defined weights for metrics and targets",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a175bbd6-ec3f-48b1-8d07-74736f2493bf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.2,
        "x": 0.05,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: Company proxy statements.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9b938778-1116-41a8-bf71-6a3036e319f9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.05,
        "y": 0.05
      },
      "kind": "title",
      "text": "Ad hoc changes have also undercut effectiveness of compensation plans",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "792b9153-82b2-48f1-98ce-eda5cd0e5e9c",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "governance",
      "slug": null,
      "matchId": "cb5099c7-ae3e-4c1f-b4d0-eae20db49066",
      "evidence": "Critique of compensation metric setting and board discretion.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [
    {
      "to": 75,
      "from": 41,
      "beatId": "9bd661fe-88d6-4551-876f-d6bd438ebca8",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Solution (Provide relief)",
      "beatSlug": "problem-agitate-solution-solution-provide-relief",
      "evidence": "The document presents a solution, including new board members and a coherent returns-focused strategy, to address ExxonMobil's issues.",
      "position": 2,
      "confidence": 0.9,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}