Exxon Mobil announced two changes to the board on Monday, including activist investor and ESG supporter Jeff Ubben, in a sign that the company is facing its uncertain future as the world moves to cleaner energy and shuts investors away from oil supplies.
The company said Monday that Mike Angelakis, the chairman and CEO of Atairos and former CFO of Comcast, is also a new director.
Exxon shares jumped 4% after CNBC’s David Faber reported the upheaval for the first time.
The actions come as Exxon came under pressure from shareholders to reform its board amid the company’s declining share price. Exxon’s investor day is Wednesday.
“We welcome these new directors as part of our ongoing refreshment of the board, which builds on the diverse global business experience of our current members,” Darren Woods, Exxon’s chairman and CEO, said in a statement. “Their contributions will be appreciated as ExxonMobil promotes plans to increase shareholder value by providing the necessary energy responsibly while playing a leading role in the energy transition,” he added.
The board changes come after Exxon announced a new director in February, saying it would “take further action soon.”
DE Shaw, who is campaigning for Exxon for change, is expected to support the latest board changes, according to sources familiar with the matter.
Ubben founded Inclusive Capital Partners in 2020, after resigning from ValueAct, the firm he founded in 2000. In his last few years at the firm, he oversaw ValueAct’s Spring Fund, which focused on sustainable investment.
Ubben is expected to become a significant shareholder in Exxon over time. Ubben is no stranger to investing in oil and gas companies. While at ValueAct, he took an interest in BP, saying traditional energy companies could belong in ESG portfolios.
Exxon came under fire because it did not invest in the future of energy. Earlier this year, the company announced its plans to invest $ 3 billion in carbon capture and other technologies that reduce emissions.
In December, the newly formed activist investor group Engine No. 1 announced plans to seek four Exxon board seats. The group, which includes founders of activist hedge funds, including Partner Fund Management and JANA Partners, has gained the support of California pension giant CALSTRS.
Following Exxon’s announcement in February that Tan Sri Wan Zulkiflee Wan Ariffin, former Petronas CEO, would join the board, Engine No. 1 said that the changes do not go far enough. The group reiterated this sentiment after announcement Monday.
“While ExxonMobil has now conceded the need for board change, there are directors with diverse records of success in the energy industry who can position the company for success in a changing world,” said Engine No. 1 said in a statement. “We remain confident that our nominees offer the right experience and skills to put ExxonMobil on a path to sustainable, long-term value creation for the benefit of all shareholders.”
Shares in Exxon rose 32% this year.
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