Exxon Adds Two New Board Members -- Update
March 01 2021 - 10:05AM
Dow Jones News
By Dave Sebastian
Exxon Mobil Corp. said it has added Michael Angelakis and
Jeffrey Ubben to its board after the energy giant faced pressure
from a pair of activist investors.
Mr. Angelakis is the chairman and chief executive officer of
private-equity firm Atairos. Mr. Ubben is the co-founder of
Inclusive Capital Partners, an investment firm focused on promoting
environmental, social and governance practices.
"Their contributions will be valued as ExxonMobil advances plans
to increase shareholder value by responsibly providing needed
energy while playing a leadership role in the energy transition,"
Exxon Chairman and Chief Executive Darren Woods said.
The Wall Street Journal in January reported that the company was
preparing to make changes to its board and adopt further measures
to reduce its carbon footprint. The company had discussed adding
one or more new directors to its board and stepping up
sustainability investments.
Exxon was in talks with D.E. Shaw Group, the Journal reported.
D.E. Shaw on Monday said it welcomes the board additions. The other
activist, Engine No. 1 LLC, has nominated four candidates to
Exxon's board, including Gregory Goff, the former CEO of refiner
Andeavor, which was sold to Marathon Petroleum Corp.
"We remain confident our nominees bring the right experience and
skills to help put ExxonMobil on a path to sustainable, long-term
value creation for the benefit of all shareholders," Engine No. 1
said after Exxon announced the board appointments.
Engine No. 1 was launched by technology investor Chris James
late last year with $250 million under management. Its focus is on
so-called impact investing, which seeks to push companies to make
changes that will be beneficial in the long run to stakeholders
such as workers and shareholders alike. D.E. Shaw, a hedge fund
best known for its quantitative trading, is an occasional activist,
having picked fights at companies including at Emerson Electric Co.
and Lowe's Cos.
With Messrs. Angelakis and Ubben, Exxon's board increased to 13
directors, 12 of whom are independent, the company said.
Before the coronavirus pandemic, Mr. Woods embarked on an
ambitious strategy to spend more to increase production. The sharp
drop in demand for fossil fuels since then triggered billions of
dollars of losses for the company. In November 2020, Exxon pulled
back from Mr. Woods' plan to boost its overall oil-and-gas
production by one million barrels a day by 2025. The company said
it would cut billions of dollars from its capital expenditures over
the next five years and invest only in its best assets.
Exxon shares rose about 4% in premarket trading Monday.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
March 01, 2021 09:50 ET (14:50 GMT)
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