Investing activist Jeff Ubben joined Exxon Mobil’s board of directors, the company said on Monday.
Exxon’s stock jumped 4% after CNBC’s David Faber first reported the shock.
Mike Angelakis, president and CEO of Atairos and former CFO of Comcast, also joined the oil giant’s board of directors.
The changes come at a time when Exxon faces pressure from shareholders to reorganize its board amid weakening company stock prices. Exxon’s investor day is Wednesday.
“We welcome these new directors as part of the ongoing renewal of the board, which is based on the diverse global business experience of our current members,” said Darren Woods, president and CEO of Exxon, in a statement. “Your contributions will be assessed as ExxonMobil moves forward with plans to increase shareholder value, responsibly providing the necessary energy while playing a leading role in the energy transition,” he added.
The board changes came after Exxon announced a new director in February, saying it hoped to “take further action in the short term”.
DE Shaw, who has been lobbying Exxon for changes, must support the board’s latest changes, according to sources familiar with the matter.
Ubben founded Inclusive Capital Partners in 2020, after moving away from ValueAct, the company he founded in 2000. In his later years at the company, he oversaw ValueAct’s Spring Fund, which was focused on sustainable investments.
Ubben is expected to become a significant shareholder of Exxon over time, according to the sources. Ubben is well aware of investments in oil and gas companies. While at ValueAct, he acquired a stake in BP, saying that traditional energy companies may belong to ESG portfolios.
Exxon has been criticized for not investing in the future of energy. 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 founders of activist hedge funds, including Partner Fund Management and JANA Partners, won support from California pension giant CALSTRS.
After Exxon’s announcement in February that former Petronas CEO Tan Sri Wan Zulkiflee Wan Ariffin would join the board, Engine No. 1 said the changes did not go far enough.
“A board that has underperformed dramatically and has challenged shareholder sentiment for so long has not gained the right to choose its own new members or bundle up in the face of requests for change,” the group said in a statement. “ExxonMobil shareholders deserve a Board that works proactively to create long-term value, not defensively in the face of deteriorating returns and the threat of losing their seats.”
Exxon’s shares are up 32% this year amid a turnover of investors in the downed energy sector.
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