News Column

Hess Comments on Elliott Letter

May 15 2013 10:26PM

Hess Corp. issued the following statement in response to Elliott's letter this morning in which its director nominees finally acknowledged that their short-term compensation plan, where they agreed to be paid substantial sums directly by a hedge fund, was wrong.

According to the company, John Mullin, Hess' Lead Director, said, "As we have said all along, Elliott's directors compromised their independence and judgment by agreeing to accept Elliott's compensation scheme. This follows the Elliott nominees' recent move to back away from the flawed breakup plan for Hess that they had originally agreed to support -- and they backed away only after hearing the overwhelming rejection of that plan by Wall Street research analysts and Hess shareholders.

"The admission today by Elliott and its nominees makes it clear that shareholders agree that Elliott's scheme was unacceptable, and exposed Elliott's campaign for what it is, short termism at the expense of all shareholders. It is also clear that shareholders, in pushing Elliott's nominees to drop the scheme, have rejected the tortured logic from ISS recommending for Elliott."

John Krenicki added, "Hess' five new, independent nominees and other continuing independent directors are committed to working in the best interests of all shareholders, overseeing the successful execution of a transformation plan endorsed by the market and to the careful consideration, study and pursuit of all strategies to ensure continued value creation at Hess. We urge shareholders to vote on the WHITE card."

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Source: Copyright Manufacturing Close - Up 2013

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