ISS advised shareholders to vote for all four candidates, citing their experience and independence, which Phillips 66 requires.

Phillips 66 (PSX) stock garnered retail attention on Monday after proxy advisory firm Institutional Shareholder Services backed all four Elliott Investment Management’s nominees for the election to the refiner’s board of directors.

ISS advised shareholders to vote for oil industry executives Brian Coffman, Sigmund Cornelius, Michael Heim, and Stacy Nieuwoudt at Phillips 66’s annual shareholder meeting on May 21, Elliott said.

“The dissident has assembled a strong slate, which has the experience and independence that PSX requires," the proxy advisory firm said.

The ISS report comes after peer Glass Lewis recommended voting for three of Elliott’s candidates last week, citing the activist investor's “more compelling case.” Another proxy advisor, Egan-Jones, had backed all four nominees.

"By recommending that Phillips 66 shareholders vote for all four Elliott nominees, ISS has now fully validated Elliott's case for change,” Elliott said in a statement.

As per the activist investor, ISS said, “Operating performance has been disappointing, particularly when considered alongside management's messaging.”

The company reported a bigger-than-expected quarterly loss in April after its refining margins slumped and its refineries went through a busy maintenance schedule.

Elliott is pushing for a strategic shift at Phillips 66, including selling its midstream business and its stake in the ChevronPhillips joint venture.

Phillips 66 has said its pipelines are an essential part of the business, and there would be adverse consequences, including a high tax burden, if there is a spinoff.

ISS also said there are “serious concerns” with how the board communicates crucial financial information to shareholders.

Retail sentiment on Stocktwits was in the ‘neutral’ (48/100) territory, while retail chatter was ‘normal.’

PSX’s Sentiment Meter and Message Volume as of 11:40 p.m. ET on May 12, 2025 | Source: Stocktwits

One retail trader said activists rarely get “this level of validation,” and a boardroom shakeup looks inevitable.

Phillips 66 stock has gained 3.4% year to date (YTD) while peers Valero Energy and Marathon Petroleum have gained 5.8% and 12.6%, respectively.

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