Elliott on Hess’ Proposal: ‘Incomplete’ and Lacking ‘Accountability’

Despite the multitude of proposals that the Hess Corporation unveiled on Monday to unlock its shareholder value, it appears that the oil company’s most outspoken investor isn’t satisfied.

Elliott Management, the hedge fund leading a proxy fight against Hess, said in a statement that the plan doesn’t go far enough to address what the firm says are the problems at the company.

“Hess’ announcement is incomplete and it lacks accountability,” Elliott, led by Paul Singer, said in its statement. “Substantial change needs to be delivered rather than partial change promised.”

A month after Elliott fist announced its broadside, Hess said that it planned to sell off its retail and refining arm and announced a shake-up of its board, adding several former oil industry executives. The company also said it would raise its dividend and buy back up to $4 billion shares.

The oil exploration and production concern argued that the proposals were an outgrowth from a lengthy turnaround campaign that the company had pursued on its own. John Hess, its chief executive, said in an interview that the hedge fund “got on the train after it left the station.”

But Elliott appeared unswayed by the plans. The investment firm pointed out that Hess had announced several culminations of a turnaround since 2010.

And despite the change in board members, Elliott said, the company’s new lead director is John Mullin III, who is tied to the Hess family estate.

The hedge fund also argued that the company had understated its poor stock performance in the months before Elliott announced its intentions! , and that Hess had minimized years of mismanagement.

“Shareholder nominees will deliver change,” Elliott said of itself, “not just promise it.”