HOUSTON, May 27 - Chevron shareholders voted against a proposal that would have mandated an independent board chair distinct from the chief executive, according to preliminary results released at the company's annual meeting on Wednesday.
The measure was introduced by the National Legal and Policy Center. Chevron publicly opposed the proposal, arguing that the company should have the discretion to determine the most appropriate governance structure for its board.
Proxy advisory firm Glass Lewis had recommended that investors back the proposal, urging approval on the grounds that an independent chair can foster a more proactive and effective board. Despite that recommendation, shareholders sided with Chevron's position.
The voting outcome follows a similar development earlier this month, when investors in ConocoPhillips rejected an analogous proposal for that U.S. oil producer.
In other matters on the agenda, shareholders approved the election of all 12 nominees to Chevron's board. Voters also turned down two additional shareholder proposals that sought company reports on indigenous peoples' rights and on human rights impacts.
Chevron said the final tally of votes aligned with the company's recommendations for each item put before shareholders.
The preliminary results from the meeting confirm investor support for Chevron's management slate and its recommended positions on the governance and reporting measures presented.
While the discussion around the independent chair proposal included differing viewpoints - with a proxy adviser urging change and the company urging flexibility - the electorate at this meeting opted to maintain Chevron's current approach to board leadership selection.
The meeting's results also echoed a comparable shareholder decision at another major oil company earlier in the month, indicating that similar governance proposals in the sector have recently faced resistance from investors.