Valero announces board changes and stockholder votes

Published 05/09/2025, 07:48 PM
Valero announces board changes and stockholder votes

Valero Energy Corporation (NYSE:VLO), a prominent player in the Oil, Gas & Consumable Fuels industry with a market capitalization of $38.13 billion, reported several key developments following its annual stockholders’ meeting on May 6, 2025. Trading at $121.73, InvestingPro analysis suggests the stock is currently undervalued. The company announced the retirement of director Robert A. Profusek in accordance with Valero’s director retirement policy. Additionally, the annual meeting saw the re-election of non-employee directors, who each received a stock unit award valued at $200,000, vesting at the 2026 annual meeting with an additional one-year holding period.

Stockholders participated in the advisory vote to approve the 2024 compensation of Valero’s named executive officers, which passed. They also ratified the appointment of KPMG LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025. The company maintains strong financial health with a FAIR rating from InvestingPro, which highlights its 37-year track record of consistent dividend payments and healthy balance sheet where liquid assets exceed short-term obligations.

The election of directors required a majority of votes cast for each nominee. Valero’s bylaws stipulate that any nominee not receiving a majority must submit a resignation for board consideration. Shares voted to abstain are counted as present for quorum purposes but not as votes cast in director elections, effectively acting as a negative vote on proposals requiring a majority of present shares.

Broker non-votes, which occur when brokers do not receive specific instructions from beneficial owners, are considered present for quorum purposes. However, they are counted as negative votes when a proposal requires the affirmative vote of the total voting power and have no effect on the majority of present shares or votes cast decisions.

These announcements are based on the information provided in Valero’s recent SEC filing.

In other recent news, Valero Energy Corporation has reported a challenging first quarter of 2025, with a net loss of $595 million, or $1.90 per share, which significantly missed the forecasted earnings per share of $0.80. Despite this, the company achieved revenue of $30.26 billion, surpassing the forecast of $28.84 billion. Analysts at Raymond (NSE:RYMD) James, maintaining a Strong Buy rating, adjusted Valero’s stock price target from $155.00 to $150.00, reflecting a nuanced view of the company’s prospects amid fluctuating margins. Meanwhile, Goldman Sachs upgraded Valero Energy’s stock from Sell to Neutral, citing a reassessment of the refining sector and Valero’s financial position. The firm raised the price target from $115.00 to $127.00, noting improved crude differentials and a constructive supply side. Valero’s recent financial performance was marked by operating losses in its refining and renewable diesel segments, despite strong revenue performance. The company maintains a strong balance sheet with $4.6 billion in cash, supporting its commitment to returning value to shareholders. Looking ahead, Valero anticipates capital investments of $2 billion for 2025, with expectations of tight product supply and low inventories.

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