May 3 Influential U.S. proxy advisory firm ISS
asked Hess Corp's shareholders to elect five new board
members nominated by activist hedge fund Elliott Management, a
day after another proxy firm, Glass Lewis, made a similar
Elliott Management, which owns a 4.5 percent stake in the
oil and gas company, has asked Hess for a number of changes,
including the election of independent directors to the board, to
increase shareholder value.
Hess raised its dividend and initiated a $4 billion share
buyback in March in an effort to boost shareholder returns, but
has failed to pacify the activist investor.
"In reaching its conclusion, ISS acknowledged the serious
lack of oversight and accountability at the board level at
Hess," Elliott Management said in a statement on Friday.
Hess has made a number of moves to become a pure play
exploration and production company in the past year, including
selling its refining and retail businesses.
The company plans nominate six new directors at its annual
meeting in May in response to criticism that its current board
Hess responded to Glass Lewis' recommendations on Thursday
by urging shareholders to elect its nominees.