Proxy Firms Call for Vote Against Exxon’s Texas Reincorporation

The two largest proxy advisers recommended shareholders vote against Exxon Mobil Corp.'s Texas reincorporation plans, citing concerns over the state’s restrictions on shareholder rights.

Exxon said in March it didn’t plan to use Texas laws that allow companies to stop smaller shareholders from filing proposals at annual meetings or bringing certain lawsuits against company management. But the energy giant stopped short of written guarantees it wouldn’t do so in the future, Institutional Shareholder Services Inc. and Glass, Lewis & Co. said in recent reports.

“Investors may have appreciated a firmer commitment to not adopt the restrictions permitted by Texas ...