Elliott Sues Phillips 66 Over Board Seats

Elliott Investment Management has filed a lawsuit against Phillips 66, seeking to ensure that four board seats are up for election at the company's 2025 annual shareholder meeting. This legal action, filed in Delaware's Court of Chancery, is part of Elliott's ongoing efforts to instigate leadership and strategic changes at the oil refiner. Elliott, which holds a 5.7% economic interest in Phillips 66, argues that the current board structure limits shareholder rights and lacks transparency regarding the number of seats available for election. Phillips 66 has nominated two new directors, A. Nigel Hearne and Howard I. Ungerleider, as part of its response to Elliott's activism, stating that Elliott's proposals prioritize uncertain short-term gains over long-term strategy. Elliott has previously nominated seven directors and suggested selling the company's midstream business to boost shareholder value. Phillips 66 plans to reduce its board from 14 to 12 members in May 2025, adding complexity to the ongoing proxy battle.