Exxon Mobile is the largest direct descendant of famous John D. Rockefeller’s Standard Oil Corporation. Today, Exxon boasts a staggering market capitalization of over $238B. Despite its immense size, the past few years have seen Exxon involved in many controversies, for example, the “ExxonKnew” Campaign. Exxon’s own website explains the campaign in their defense, explaining: The ExxonKnew is a coordinated campaign perpetuated by activist groups with the aim of stigmatizing ExxonMobil. Funders of the “#ExxonKnew” campaign have placed “pay to play” news stories, released flawed academic reports, and coordinated with public officials to launch investigations and litigation, creating the false appearance that ExxonMobil has misrepresented its company research and investor disclosures on climate change to the public.
Exxon’s response to these environmental concerns came after the stock took a hit and Exxon has faced pressure from shareholders to reshuffle its board. Most recently, activist investor Jeff Ubben has joined Exxon Mobil’s board of directors. An activist investor is an individual or group that takes a significant stake in a company with the goal of influencing how the company is run. In the case of Exxon, Jeff Ubben will be doing just that. All in all, shareholders will be hoping that Jeff does a good job of improving Exxon’s lack of investment in green energy, so far reactions have been solid with Exxon’s stock increasing 4% in response to the announcement.
Do you think Exxon will really improve? Or will they continue their current trajectory?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.