ExxonMobil, Rex Tillerson Reach Deal to Cut Ties

Robert Lighthizer Trump’s pick for U.S. trade representative served as a deputy trade czar under President Ronald Reagan
Robert Lighthizer Trump’s pick for U.S. trade representative served as a deputy trade czar under President Ronald Reagan
Author

05 January, 2017

Exxon Mobil (NYSE:XOM) of Texas and their Chief Executive Rex Tillerson have mutually made a decision to cut all ties just days before he takes over as the Secretary of State of Donald Trump.

The company announced that it will pay him in cash for the more than 2 million shares he would have received over the next 10 years and that the money will be transferred to an independently managed trust.

The proposed trust can not hold Exxon stock, and Tillerson has committed to selling the more than 600,000 Exxon shares he owns, the company said.

The company took pains to say that its agreement was made in consultation with federal ethics authorities, saying four times in one filing that it employed guidance from such experts, in addition to repeated statements about complying with federal conflict of interest guidelines.

Exxon said that if Tillerson returns to work in the oil and gas industry during the 10-year payout period from the trust, he would forfeit the funds.

The trust will not be allowed to invest in ExxonMobil.

President-elect Trump's personal business ties have been the subject of much controversy during the presidential transition.

Hulu confirms deal for rights to live CBS broadcast, two other networks
Hopkins also said that Hulu is in "active discussions" with part-owner NBCUniversal about adding their channels to the lineup. But he did say that the company's subscriber base and revenues were growing "in excess of 30 percent annually".

John Thune, R-S.D., said on Tuesday that the committee hopes to hold a confirmation hearing for Trump's picks for Commerce and Transportation secretaries "as early as next week". He now holds more than 600,000 vested shares which are worth around $54 million.

The one bright spot is that according to the Wall Street Journal, while Tillerson is receiving payments from this trust, he can not work in the oil or gas industry or else he will forfeit the remaining payouts.

Some senior Republicans have expressed concerns about Tillerson's ties to Russian president Vladimir Putin and his views on sanctions.

Rex Tillerson, chairman and CEO of ExxonMobil, testifies about the company's acquisition of XTO Energy before the House Energy and Environment Subcommittee on Capitol Hill in Washington January 20, 2010. Bob Corker, R-Tenn., praised Tillerson's conduct ahead of what could be a gruelling confirmation process.

Trump was the first U.S. presidential candidate in 40 years to hide his tax return from the public.

Senate Foreign Relations Committee Ranking Member Sen.


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