Exxon Mobil on Monday announced two board changes, including investor investor and ESG supporter Jeff Ubben, in a sign that the company faces its uncertain future as the world moves toward cleaner energy and as investors avoid oil stocks.
The company said Monday that in addition to Ubben joining its board of directors, Mike Angelakis, president and chief executive officer of Atairos and former chief financial officer of Comcast, is also a new director.
Exxon shares rose 4% after CNBC’s David Faber first reported the shake-up.
The moves come as Exxon has faced pressure from shareholders to change its board of directors amid the company’s stock price. Exxon Investors Day is Wednesday.
“We welcome these new executives as part of our board’s ongoing updating, which is based 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 assessed as ExxonMobil advances shareholder growth plans by responsibly providing the energy needed while playing a leading role in the energy transition,” he added.
The changes on the board come after Exxon announced a new director in February, saying it expects to “take further action in the near future”.
DE Shaw, who pressed Exxon for changes, is expected to 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 recent years, the company has overseen the ValueAct Spring Fund, 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 can be part of ESG portfolios.
Exxon was set on fire because it failed to invest 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 active investors Engine No. 1 announced plans to seek four seats on the Exxon board. The group, which includes founders from activist hedge funds, including Partner Fund Management and JANA Partners, has won the support of California pension giant CALSTRS.
Following Exxon’s February announcement that Tan Sri Wan Zulkiflee Wan Ariffin, former CEO of Petronas, will join the board of directors, engine no. 1 stated that the changes do not go far enough. The group reiterated this sentiment after Monday’s announcement.
“While ExxonMobil has now recognized the need to change the board, what is missing are executives with diverse successful experience in the energy industry who can position the company for success in a changing world,” said Engine No. 1 in a statement. “We remain confident our candidates bring the right experience and skills to help put ExxonMobil on a path to creating long-term, sustainable value for the benefit of all shareholders.”
Exxon shares rose 32% this year.
Sign up to CNBC PRO for exclusive statistics and analysis and live business schedules from around the world.