Elliott Nominates Independent Candidates to Strengthen Phillips 66 Board

Elliott's Strategic Move to Strengthen Phillips 66 Board

In a significant move aimed at enhancing the governance at Phillips 66, Elliott Investment Management L.P. announced its nomination of seven independent candidates for the company’s Board of Directors. These nominees bring extensive experience in refining operations, capital allocation, and governance practices to the table, which Elliott believes is crucial for the company's continued growth and competitiveness.

The announcement came on March 4, 2025, as Elliott, which manages over $2.5 billion in investments in Phillips 66, detailed its rationale for proposing changes to the Board. The company has faced persistent underperformance compared to its peers, prompting Elliott to advocate for measures to unlock its full potential.

The Candidates

The nominated individuals include a mix of former executives from notable companies in the energy sector:

1. Brian Coffman - Former CEO of Motiva Enterprises and former Senior VP of Refining at Andeavor. Coffman’s background in refining positions him well to contribute to the operational strategies at Phillips 66.
2. Sigmund Cornelius - Previous Senior VP and CFO of ConocoPhillips, Cornelius brings a wealth of experience in strategic financial oversight crucial for Phillips 66.
3. Michael Heim - One of the founders of Targa Resources, Heim’s expertise in midstream services will enhance the company’s operational capabilities.
4. Alan Hirshberg - Former EVP at ConocoPhillips with over 35 years in energy, Hirshberg’s leadership in technology and project management will be instrumental in adapting the company's strategies.
5. Gillian Hobson - Former Partner at Vinson & Elkins, focused on capital markets and mergers. Hobson's legal expertise in corporate governance will be vital for ensuring the board operates effectively.
6. Stacy Nieuwoudt - A seasoned analyst turned investor, Nieuwoudt has the background to evaluate energy sector investments critically.
7. John Pike - A Partner at Elliott Investment Management, his investment management experience will help align the board’s decisions with shareholder interests.

Key Initiatives Proposed

Elliott has outlined three primary initiatives it believes are crucial for Phillips’ turnaround:
1. Portfolio Simplification - Streamlining operations to focus on core strengths might lead to enhanced performance.
2. Operational Review - A comprehensive assessment of current operations to identify areas for improvement.
3. Enhanced Oversight - Strengthening the board's capability to hold management accountable through improved governance practices.

Elliott’s approach is strategic; it aims to bring fresh perspectives to Phillips 66's leadership in a time of transition and potential growth. The efficacy of this move can be traced back to the changes already being made at Phillips, such as reducing the size of its board and adjusting its composition following announcements that some directors would not seek reelection.

Proposal for Annual Elections

In conjunction with the nominations, Elliott also filed a preliminary proxy statement proposing a new corporate governance policy allowing for annual director elections. This proposal reflects the firm’s commitment to increasing accountability, following previous shareholder support for similar measures. By advocating for one-year terms for directors, Elliott aims to foster a governance model that is responsive to the needs and expectations of its shareholders.

This strategic push by Elliott underscores the importance of strong governance in the competitive energy sector, and the impact that well-qualified directors can have on steering Phillips 66 towards a path of renewed excellence and shareholder value.

For detailed biographies of the nominees and further information, visit Streamline66.com.