XOM Exxon Mobil Corp

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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