Impactive Capital LP, a New York-based hedge fund that owns 5% of WEX shares, is seeking to install four independent directors on the company’s board at its next annual shareholders meeting.
Citing concerns about WEX Inc.'s (NYSE: WEX) “alarming share price underperformance," a New York-based activist investor is seeking to install four independent directors on the company’s board at its next annual shareholders meeting.
The investor, Impactive Capital LP, is a hedge fund with a 5% stake in the Portland-based financial technology services provider.
“As one of WEX’s largest and most committed investors, Impactive is fully aligned with the success of the company,” Impactive Capital said in a statement.
“Despite our best efforts, the board has continued to dismiss our view that WEX’s long-term owners deserve meaningful representation in the boardroom to hold management accountable and drive improved operating performance,” it added.
The hedge fund’s board nominees include Lauren Taylor Wolfe, a founding partner at Impactive Capital: technology executive Kurt Adams; Ellen Alemany, a veteran financial services CEO; and Ken Cornick, touted as a technology and finance expert.
Impactive points to a “widening gap” between WEX shares and those of Atlanta-based fintech peer Corpay Inc. (NYSE: CPAY) over the past five years as “increasingly alarming." It notes that WEX has trailed Corpay by 58% and underperformed the S&P Midcap 400 stock index by 76% during that period.
More recently, over the past three years, the hedge fund argues, WEX has underperformed Corpay by 81% and the S&P Midcap by 52%.
WEX shares closed at $165.67 on Wednesday, putting its market value at $5.68 billion. The stock is trading 9.8% higher than a year ago.
WEX response
In a statement emailed to Mainebiz, a spokesman for WEX said that members of the company’s board and management team “have engaged with Impactive’s principals dozens of times and have thoughtfully considered Impactive’s input on strategy, capital allocation and board composition.”
The statement notes that the company has taken decisive actions to strengthen its performance and closed 2025 with record revenue, accelerating earnings growth and clear momentum.
“While we are not satisfied with the stock price, we note that our stock has outperformed WEX’s industry peer group year-to-date and over the one- and five-year trailing periods,” the spokesman said.
The company held its annual shareholders meeting last year in early May but has not yet set a date for this year.
'Clear momentum and confidence'
WEX provides fleet management, payments an benefits administration services to employers around the globe.
Last week, it posted fourth-quarter earnings and revenue that surpassed market expectations and issued initial full-year financial guidance, with bullish comments from CEO Melissa Smith on sustainable growth and profitability momentum.
“We delivered record revenue in 2025 while navigating a dynamic macro environment by remaining focused on our strategic priorities,” she said last week. “Entering 2026, we have clear momentum and confidence in our long-term plan to deliver sustainable growth, expanding profitability and robust cash flow.”
