Activist investor Jeff Ubben has joined Exxon Mobil’s board of directors, the company said Monday.
Exxon shares jumped 4% after CNBC’s David Faber first reported the shock.
Mike Angelakis, president and CEO of Atairos and former chief financial officer of Comcast, has also joined the oil giant’s board of directors.
The moves come as Exxon has faced pressure from shareholders to reshape its board amid falling company shares. Exxon’s investment day is Wednesday.
“We welcome these new directors as part of our Board of Directors update, which builds on the diverse global business experience of our current members,” said Darren Woods, President and CEO of Exxon, in a statement. “Their contributions will be valued as ExxonMobil advances plans to increase shareholder value by providing the necessary energy responsibly, while playing a leading role in the energy transition,” he added.
Changes to the board come after Exxon announced a new director in February, saying it expected “short-term action to be taken.”
According to sources familiar with the matter, DE Shaw, who has been pushing Exxon for changes, will support the latest changes at the board.
Ubben founded Inclusive Capital Partners in 2020, after moving away from ValueAct, the firm he founded in 2000. In his later years at the firm he oversaw the ValueAct Spring, which focused on sustainable investment. .
Ubben is expected to become a significant shareholder of Exxon over time, according to sources. Ubben is no stranger to investing in oil and gas companies. While at ValueAct, he participated in BP, saying that traditional energy companies may belong to ESG portfolios.
Exxon has been on fire for not investing in the energy future. Earlier this year, the company announced plans to invest $ 3 billion in carbon capture and other emission reduction technologies.
In December, the newly formed group of activist investors, Engine No. 1, announced plans to seek four seats on Exxon’s board. The group, which includes activist hedge fund founders, including Management Fund partners and JANA Partners, won support from California pension giant CALSTRS.
Following Exxon’s announcement in February that Tan Sri Wan Zulkiflee Wan Ariffin, former CEO of Petronas, would join the board, engine number 1 said the changes were not going far enough.
“A board that has overcome this dramatically and challenged shareholder sentiment for a long time has not earned the right to elect its own new members or to pack in the face of change requests,” the group said. in a statement. “ExxonMobil shareholders deserve advice that works proactively to create long-term value, not defensively in the face of deteriorating returns and the threat of losing their seats.”
Exxon shares are up 32% this year amid investor turnover in the defeated energy sector.
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