Activist investors led a revolt at oil giant ExxonMobil’s (XOM) annual shareholder meeting, ousting two executives with two other votes too close to call. Shareholders expressed displeasure with the company's lobbying activities and refusal to transition away from fossil fuels.

Chief Executive Darren Woods will be dealing with two new independent directors on the company board.

The board will also be reconsidering two proposals with majority shareholder approval to draft reports on the company’s lobbying, both in general and specifically around climate change.

Leading the charge was a relatively small hedge fund called Engine No. 1. Its 83-page presentation to investors argued that ExxonMobil’s decision not to follow other fossil fuel companies in transitioning to green energy had put the company’s prospects in jeopardy.

"A refusal to accept that fossil fuel demand may decline in decades to come has led to a failure to take even initial steps towards evolution, and to obfuscating rather than addressing long-term business risk," it said.

Glass Lewis, an influential advisory firm, found that argument convincing, throwing its weight behind two of the four candidates Engine No. 1 was pushing.

"We believe Engine No. 1 has presented a compelling case that, without a more concerted response and well-developed strategy ... related to the global energy transition, Exxon's returns, cash flow and dividend, and thus its shareholder value, are increasingly at threat," its report read.

The rebellion was made possible by flagging numbers from ExxonMobil. Though high gas prices have recently buoyed its profits, Engine No. 1 noted that in the five years prior, the company’s overall return shrunk by 17%.

Once considered among the profitable corporations in the world, ExxonMobil has faced scrutiny over its direction in recent years. In December, a New York Times article touched on how the company has struggled to "find its footing as demand for oil and gas falls and world leaders and businesses pledge to fight climate change."

ExxonMobil was recently removed from the Dow Jones Industrial Average, ending a run that stretched back to 1928.

Shares of ExxonMobil on Wednesday closed at $58.94, up $0.68, or 1.17%.

Shareholders of ExxonMobil will decide whether to replace up to four board members with supporters of renewable energy investment
Shareholders of ExxonMobil will decide whether to replace up to four board members with supporters of renewable energy investment AFP / ERIC PIERMONT
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