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NEW YORK - Impactive Capital LP, a significant shareholder of WEX Inc. (NYSE: WEX), has expressed concerns over the declining confidence among the company’s shareholders, as evidenced by the recent annual meeting results. The concerns come amid a challenging period for WEX, with the stock down over 28% in the past six months and trading significantly below its InvestingPro Fair Value, despite maintaining profitability with a P/E ratio of 17.35. At the 2025 annual meeting, three WEX directors, including CEO Melissa Smith, faced substantial opposition, with each receiving more than 30 percentage points less support than the previous year.
Jack VanWoerkom, the Lead Independent Director with two decades on the WEX board, only garnered 57.2% support, a notable drop from 95.6% last year. Melissa Smith, the CEO and Chairwoman of WEX, received just 64.3% support, down from 97.7%. James Neary, a Director for nearly ten years, saw his support fall to 67.0% from 99.8%. These figures placed the directors in the lowest percentiles compared to their peers at S&P 400 companies in 2024.
Impactive, holding approximately 7.0% of WEX’s shares, had previously indicated its intention to vote against these directors in a letter to shareholders on May 2, 2025. The firm cited the company’s widening valuation gap and lack of a viable strategy to reverse the trend as reasons for its stance. According to InvestingPro data, five analysts have recently revised their earnings expectations downward, though the company maintains strong fundamentals with a 72% gross profit margin.
Lauren Taylor Wolfe, Co-Founder and Managing Partner of Impactive, stated that the results from the annual meeting reflect a crisis of confidence in the current board’s ability to align with shareholder interests and address the company’s underperformance. Impactive has made it clear that they are prepared to nominate at least four director nominees at the 2026 annual meeting unless WEX demonstrates a significant reversal in its performance and engagement approach in the coming months.
Impactive Capital, based in New York, is known for its active investment management strategy, focusing on long-term sustainable returns by working collaboratively with management teams and boards. For investors seeking deeper insights into WEX’s valuation and prospects, InvestingPro offers comprehensive analysis with additional ProTips and detailed financial metrics in its Pro Research Report, available for over 1,400 US stocks.
This report is based on a press release statement from Impactive Capital LP.
In other recent news, WEX Inc. reported its first-quarter 2025 earnings, showing an earnings per share (EPS) of $3.51, which exceeded the forecasted $3.38. The company’s revenue for the quarter was $636.6 million, slightly above the forecast of $632.35 million, although it represented a 2.5% decrease year-over-year. Shareholders at WEX Inc.’s annual meeting approved an amendment to the company’s equity and incentive plan, increasing the number of shares available for issuance by approximately 3.4 million. Additionally, the election of directors was confirmed, including Nancy Altobello and Melissa Smith, among others. Impactive Capital, a significant shareholder, announced its intention to vote against three incumbent directors, citing concerns over WEX’s underperformance compared to its peers. Despite these challenges, Impactive remains open to working with WEX’s board to enhance shareholder value. The company also announced a $25 million investment in sales and marketing initiatives, reflecting ongoing efforts to strengthen its market position.
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