Exploring Hydrocarbon Depletion
Page added on January 5, 2017
Rex W. Tillerson, in line to become the next secretary of state, has agreed to sever all ties with ExxonMobil Corp. to comply with conflict-of-interest requirements. Senate hearings are scheduled to begin Jan. 11. With his retirement effective Dec. 31, the board awarded Tillerson a retirement package worth an estimated $180 million to severe financial ties; the net effect is a reduction of about $7 million in future compensation. If he is confirmed, ExxonMobil agreed to transfer to an independent trust the equivalent of two million unvested shares that Tillerson would have received in March, when he originally was scheduled to retire. Forfeiture rules would prohibit Tillerson from working in the oil and/or natural gas industry during the 10-year payout period. He also agreed to surrender $4.1 million-plus in cash bonuses over the next three years, and he surrendered retiree medical and dental benefits, administrative, financial and tax support. Separate to the agreement, Tillerson also committed to the State Department that, if confirmed, he would sell the more than 600,000 shares in ExxonMobil that he currently owns.