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(Bloomberg) -- Elliott Investment Management is heading toward a proxy battle with Phillips 66 after failing to reach an agreement with the energy group’s leadership on a path to improving performance.
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The activist investor has nominated seven directors including Elliott partner John Pike for election to the board of Phillips 66, according to a statement Tuesday. The move comes after Elliott met with Phillips 66 this week and did not reach a settlement.
“Elliott identified three initiatives that it believes are critical to real progress finally occurring at Phillips: portfolio simplification; an operating review; and enhanced oversight,” Elliott said in the statement. “The director nominees announced today will bring the right experience and objective perspectives to the board as it executes the best path forward.”
A preliminary proxy filing noted that none of Phillips 66’s independent directors were present during the March 3 meeting.
The nominees also include:
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Brian Coffman, former chief executive officer at refiner Motiva Enterprises.
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Sigmund Cornelius, former chief financial officer of ConocoPhillips
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Michael Heim, former chief operating officer of Targa Resources Corp., the energy pipeline company.
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Alan Hirshberg, ConocoPhillips’ former executive vice president of production, drilling and projects.
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Gillian Hobson, a former partner at energy-focused law firm Vinson & Elkins.
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Stacy Nieuwoudt, former energy and industrials analyst at Citadel Securities.
Representatives for Elliott and Phillips 66 declined to comment.
While the hedge fund proposed seven board nominees, it said it could withdraw some of its nominees or make some alternates since there may not be enough available seats at the election. The company has a classified board, meaning only a handful of seats can be voted on, the filing showed.
Elliott last month disclosed a stake of more than $2.5 billion in Phillips 66, saying in a letter at the time that there was an urgent need for the Houston-based company to “pursue an alternative path.” The activist began pressing for changes at Phillips 66 in 2023 and has called for, among other things, the sale of a pipeline business and more ambitious refining targets.
Phillips 66’s board is led by Chairman and CEO Mark Lashier. The company has been working with Elliott and last year said it would name Robert Pease, a former president of Shell Trading Co., to its board to provide more refining experience. But its stock has continued to lag.