Activist investor Jeff Ubben has joined Exxon Mobil’s board of directors, the company said Monday.
Shares of Exxon were up 4% after CNBC’s David Faber first reported the shakeup.
Mike Angelakis, Atairos’ chairman and chief executive officer and former Comcast CFO, has also joined the oil giant’s board of directors.
The moves come as Exxon has come under pressure from shareholders to reshuffle its board amid the company’s languishing stock price. Exxon’s investor day is Wednesday.
“We welcome these new directors as part of our ongoing board renewal, which builds on the diverse global business experience of our current members,” said Darren Woods, Exxon chairman and CEO in a statement. “Their contributions will be appreciated as ExxonMobil plans to increase shareholder value by responsibly delivering the energy needed 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 expected “to take further action shortly.”
DE Shaw, who has pushed Exxon for changes, is expected to support the latest governance changes, according to sources familiar with the matter.
Ubben founded Inclusive Capital Partners in 2020, after he divested from ValueAct, the company he founded in 2000. In his last years with the company, he oversaw ValueAct’s Spring Fund, which focused on sustainable investing.
According to the sources, Ubben is expected to become a major shareholder of Exxon over time. Ubben is no stranger to investing in oil and gas companies. When he took a stake in BP at ValueAct, he said traditional energy companies may belong in ESG portfolios.
Exxon is under fire for not investing in the future of energy. Earlier this year, the company announced plans to invest $ 3 billion in carbon capture and other emissions-reducing technology.
In December, the newly formed activist investor group announced Engine No. 1 plans to seek four Exxon board seats. The group, which includes founders of activist hedge funds including Partner Fund Management and JANA Partners, was supported by California retirement giant CALSTRS.
Following Exxon’s announcement in February that Tan Sri Wan Zulkiflee Wan Ariffin, former CEO of Petronas, would join the board, Engine No. 1 that the changes did not go far enough.
“A board that has done this dramatically and defied shareholder sentiment for so long has not earned the right to choose its own new members or pack itself in the face of calls for change,” the group said in a statement. “ExxonMobil shareholders deserve a board that works proactively to create long-term value, not defensive in the face of deteriorating returns and the threat of losing their seat.”
Shares of Exxon are up 32% this year due to the rotation of investors in the downtrodden energy sector.
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