AES Corp (NYSE: AES) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced a new board member, and it’s causing excitement among investors. Today, we’ll talk about the addition, what we’re seeing from AES, and what we’ll be watching for ahead.
AES Adds Jeffrey Ubben To The Board
As mentioned above, AES Corp is having an overwhelmingly strong start to the trading session this morning after announcing an addition to its Board of Directors. In a press release, the company announced that Mr. Jeffrey Ubben, Founder and CEO at ValueAct Capital, has been appointed to its Board of Directors. In the release, AES said that the change would be effective immediately and the appointment is part of the Company’s efforts to create shareholder value.
In the release, AES announced that Mr. Ubben will serve on the Compensation Committee and the Financial Audit Committee.
Mr. Ubben founded ValueAct Capital, a San Francisco-based investment firm that currently has more than $15 billion in assets under management. He is also a Director at Twenty-First Century Fox Inc., and has served as a Director of Gartner Group, Inc., Misys plc, Sara Lee Corp., Valeant Pharmaceuticals International, and Willis Towers Watson plc, as well as other public and private companies. In a statement, Charles Rossotti, Chairman at AES, had the following to offer:
“We are delighted to welcome Jeff to AES’ Board. Jeff’s exceptional investment management track record and extensive public market experience will further enhance our expertise and strength… We remain committed to enhancing shareholder returns and we believe that Jeff will make a significant contribution to that end in an increasingly dynamic global energy market that is demanding innovative solutions.”
The above statement was followed up by Jeff Ubben. Here’s what he had to offer:
“In recent years AES began a transition to become a more sustainable company by selling coal assets and investing in wind, solar and energy storage… AES is well positioned to play a leading role in bringing new energy solutions to the domestic and international markets it serves.”
How The Stock Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. In this particular case, the news that Mr. Ubben has been added to the AES Board of Directors is proving to be a positive among investors. This can be seen by looking at the strong gains we’re seeing on the stock today. Currently (10:23), AES is trading at $11.77 per share after a gain of $1.05 per share or 9.74% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AES. In particular, we’re interested in following the story surrounding the addition of Mr. Ubben to the Board and excited to see the innovative changes he brings to the table. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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