ExxonMobil cuts ties with former CEO Rex Tillerson ahead of confirmation hearings
Linus Unah – Fourth Estate Contributor
Houston, TX, United States (4E) – ExxonMobil said it has reached an agreement with its former chairman and chief executive officer Rex W. Tillerson to sever all ties with the company to comply with conflict-of-interest requirements associated with his nomination as secretary of state.
The board of directors of ExxonMobil said in a statement on Wednesday that the agreement was developed in consultation with federal ethics regulators.
Under the deal, the value of more than 2 million deferred ExxonMobil shares that Tillerson would have received over the next 10 years would be transferred to an independently managed trust if he is confirmed as secretary of state.
Exxon said its share awards would also be cancelled and the trust would be prohibited from investing in the company.
Payments to Tillerson from the trust would be subject to the same 10-year schedule that the cancelled awards would have had if they had continued in place.
“Tillerson would also surrender entitlement to more than $4.1 million in cash bonuses, scheduled to pay out over the next three years, and other benefits such as retiree medical and dental benefits, and administrative, financial and tax support,” the company said in a statement.
The trust also prohibits Tillerson from working in the oil and/or gas industry during the 10-year payout period.
The net effect of the agreement is a reduction of about $7 million in compensation owed to Tillerson .
Tillerson retired on Dec. 31 with more than 40 years of service with ExxonMobil.
He was replaced by the company’s president, Darren Woods, who will become chief executive and chairman in January following Tillerson’s retirement.
Separately, Tillerson has also committed to the State Department that he would sell the more than 600,000 shares in ExxonMobil he currently owns following his confirmation.
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