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Associated Press
Rex Tillerson, the nominee of President-elect Donald Trump for secretary of state, is severing ties with Exxon Mobil through a $180 million retirement package one week before his Senate confirmation hearing begins.
Tillerson will surrender, if confirmed, all unpaid stock that was part of his pay package, more than 2 million shares. In exchange, the company will make a cash payment equal to the value of those shares to a trust to be overseen by a third party, according to a regulatory filing Wednesday with the Securities and Exchange Commission.
Because of the way the compensation is being dispensed, Tillerson will give up about $7 million, compared with what he would have been paid had he retired in March as he had planned to do before the nomination.
Tillerson, who worked for Exxon for more than 40 years, would have reached the company's mandatory retirement age of 65 by March, after which he would have received the payout from Exxon over a period of 10 years.
If Tillerson returns to the oil and gas industry within 10 years, the money in the trust would be paid out to charities of the controlling trustee's choosing.
With the appointment of Tillerson as secretary of state comes a host of thorny conflict-of-interest issues. The placing of the funds into a trust is intended to allay concerns that decisions made by Tillerson as a member of the Trump cabinet could help him or his former associates.
Darren Woods, a 25-year Exxon veteran who had served as the company's president, took over as CEO of Exxon Mobil at the start of the new year.
Tillerson began his career at Exxon as a production engineer straight out of the University of Texas at Austin in 1975. He replaced longtime CEO Lee Raymond in 2006 and led the company during one of the most turbulent periods in its history, which included the 2008 financial crisis and a collapse in oil prices since mid-2014 that has sharply diluted Exxon's profits.
WHO IS HE?
Rex Wayne Tillerson (born March 23, 1952) is an American businessman. He is the chairman and chief executive officer (CEO) of ExxonMobil.
Tillerson began his career as an engineer and holds a bachelor's degree in civil engineering from the University of Texas at Austin. Tillerson joined Exxon in 1975, and by 1989 had become general manager of the Exxon USA central production division. In 1995 he became president of Exxon Yemen Inc. and Esso Exploration and Production Khorat Inc. In 2006, Tillerson was elected chairman and chief executive officer of Exxon, the world's 6th largest company by revenue. Tillerson will reach Exxon's mandatory retirement age of 65 in March 2017, but is retiring effective December 31, 2016, and will be succeeded by Darren Woods. He is a member of the National Academy of Engineering.
On December 13, 2016, President-elect Donald Trump announced that Tillerson would be his nominee for Secretary of State. He is a longtime contributor to Republican campaigns. Tillerson's close business ties with Russian President Vladimir Putin have generated controversy, particularly in light of the revelations about Putin's business dealings in the Panama papers. He has previously been the director of the joint US-Russian oil company Exxon Neftegas.
Tillerson received a bachelor's degree in civil engineering from the University of Texas at Austin in 1975. During his time at UT Austin, he was involved with the Tejas Club, the Longhorn Band, and Alpha Phi Omega. In 2006 he was named a Distinguished Engineering Graduate.
In 1998, he became a vice president of Exxon Ventures (CIS) and president of Exxon Neftegas Limited with responsibility for Exxon's holdings in Russia and the Caspian Sea. In 1999, with the merger of Exxon and Mobil, he was named executive vice president of ExxonMobil Development Company. In 2004, he became president and director of ExxonMobil. On January 1, 2006, Tillerson was elected chairman and chief executive officer (CEO), following the retirement of Lee Raymond.
Tillerson re-established his position of chairman and chief executive officer during a shareholder meeting on May 28, 2008. The Rockefeller family sponsored a non-binding resolution to separate the CEO and chairman positions to maintain a system of checks and balances. The Rockefeller family also wanted Exxon Mobil to invest more in alternative energy, with Neva Goodwin saying in a public statement that the company "needs to reconnect with the forward-looking and entrepreneurial vision of my great-grandfather." However, the resolution did not obtain the necessary majority and Tillerson held on to both the chairman and chief executive officer job titles.
In 2009, Exxon Mobil acquired XTO Energy, a major natural gas producer, for $31 billion in stock. Some writers have stated that "Tillerson's legacy rides on the XTO Deal."
Tillerson has ties with President Vladimir Putin of Russia. They have been associates since Tillerson represented Exxon's interests in Russia during President Boris Yeltsin's premiership. John Hamre, the President and CEO of the Center for Strategic and International Studies,
of which Tillerson is a board member, states that Tillerson "has had
more interactive time with Vladimir Putin than probably any other
American, with the exception of Dr. Henry Kissinger."
Tillerson is a friend of Igor Sechin,[20] the leader of the Kremlin's Siloviki (security/military) faction, who is "widely believed to be Russia's second-most powerful person" after President Putin.
In 2011, on behalf of ExxonMobil, Tillerson signed an agreement with Russia for drilling in the Arctic that could be valued up to $300 billion. The company began drilling in the Kara Sea in the Summer of 2014, and a round of sanctions against Russia introduced in September that year due to the Ukrainian crisis was to have brought the project to a halt in mid-September. Nevertheless, the company was granted a reprieve that stretched the window to work until October 10, which enabled it to discover a major field with about 750 million barrels of new oil for Russia.
In 2013, Tillerson was awarded the Order of Friendship by President Putin along with Claudio Descalzi, the head of the Italian oil major Eni, for their contribution to developing cooperation in the energy sector.
He was a member of the executive committee of The Business Council for 2011 and 2012.
Tillerson is a longtime volunteer with the Boy Scouts of America, and from 2010 to 2012 was their national president, its highest non-executive position. Tillerson is an Distinguished Eagle Scout, and his father was a BSA executive. Tillerson is a long time supporter of the Boy Scouts of America and has said, "I think the highlight of my youth and adolescent years were my achievements in Scouting." In 2009, Tillerson was inducted into the Eagle Scout Hall of Fame of the Greater New York Councils. Ray L. Hunt, a close friend and the Chairman of Hunt Consolidated, told the Dallas Morning News, "To understand Rex Tillerson, you need to understand Scouting."
After the end of his term as as BSA president, he remained on the organization's National Executive Board. There he played a significant role in the board's 2013 decision to rescind the long-standing ban on openly gay youth as members. According to Center for Strategic and International Studies president John Hamre, Tillerson was instrumental in the change and "a key leader in helping the group come to a consensus."
Tillerson also stated, "The world is going to have to continue using fossil fuels, whether they like it or not."
Tillerson stated in 2009 that he favors a carbon tax as "the most efficient means of reflecting the cost of carbon in all economic decisions—from investments made by companies to fuel their requirements to the product choices made by consumers." In October of 2016, less than two months before his nomination as Secretary of State, he gave a speech in which he reaffirmed that ExxonMobile had long viewed a carbon tax to be “the best policy of those being considered. Replacing the hodge-podge of current, largely ineffective regulations with a revenue-neutral carbon tax would ensure a uniform and predictable cost of carbon across the economy . . . allow market forces to drive solutions . . . maximize transparency, reduce administrative complexity, promote global participation and easily adjust” to new knowledge in climate science and in the policy consequences of various courses of action.
Critics contend that Tillerson's statements regarding climate change and a possible carbon tax were primarily business-savvy public relations and legislative strategies rather than genuine efforts to confront a global environmental problem. An article in The New York Times published after Tillerson's Secretary of State nomination suggested that ExxonMobil's embrace of a carbon tax in October of 2009 may have simply been an effort to avoid cap and trade legislation that was then under consideration in the U.S. Congress. And, a Time magazine article asserts that since Tillerson announced ExxonMobil's preference for a carbon tax, the giant oil company "has not made a carbon tax a focus of its massive lobbying efforts and has supported a number of candidates and organizations that oppose measures to tackle the [climate change] issue."
He has contributed to the political campaigns of George W. Bush, as well as Mitt Romney in 2012, and Mitch McConnell. He did not donate to Donald Trump's campaign. He donated to Jeb Bush's campaign during the 2016 Republican primaries.
On the evening of December 10, the BBC cited NBC reports that "sources close to Mr Trump [were] ... saying that Mr Tillerson is likely to be named next week" and that former UN ambassador John Bolton "will serve as his deputy". On December 12, The New York Times reported that he had been chosen. On December 13, 2016, President-elect Donald Trump announced that Tillerson would be his nominee for Secretary of State.
SOURCE: WIKIPEDIA
Rex Tillerson, the nominee of President-elect Donald Trump for secretary of state, is severing ties with Exxon Mobil through a $180 million retirement package one week before his Senate confirmation hearing begins.
Tillerson will surrender, if confirmed, all unpaid stock that was part of his pay package, more than 2 million shares. In exchange, the company will make a cash payment equal to the value of those shares to a trust to be overseen by a third party, according to a regulatory filing Wednesday with the Securities and Exchange Commission.
Because of the way the compensation is being dispensed, Tillerson will give up about $7 million, compared with what he would have been paid had he retired in March as he had planned to do before the nomination.
Tillerson, who worked for Exxon for more than 40 years, would have reached the company's mandatory retirement age of 65 by March, after which he would have received the payout from Exxon over a period of 10 years.
If Tillerson returns to the oil and gas industry within 10 years, the money in the trust would be paid out to charities of the controlling trustee's choosing.
With the appointment of Tillerson as secretary of state comes a host of thorny conflict-of-interest issues. The placing of the funds into a trust is intended to allay concerns that decisions made by Tillerson as a member of the Trump cabinet could help him or his former associates.
Darren Woods, a 25-year Exxon veteran who had served as the company's president, took over as CEO of Exxon Mobil at the start of the new year.
Tillerson began his career at Exxon as a production engineer straight out of the University of Texas at Austin in 1975. He replaced longtime CEO Lee Raymond in 2006 and led the company during one of the most turbulent periods in its history, which included the 2008 financial crisis and a collapse in oil prices since mid-2014 that has sharply diluted Exxon's profits.
WHO IS HE?
Rex Wayne Tillerson (born March 23, 1952) is an American businessman. He is the chairman and chief executive officer (CEO) of ExxonMobil.
Tillerson began his career as an engineer and holds a bachelor's degree in civil engineering from the University of Texas at Austin. Tillerson joined Exxon in 1975, and by 1989 had become general manager of the Exxon USA central production division. In 1995 he became president of Exxon Yemen Inc. and Esso Exploration and Production Khorat Inc. In 2006, Tillerson was elected chairman and chief executive officer of Exxon, the world's 6th largest company by revenue. Tillerson will reach Exxon's mandatory retirement age of 65 in March 2017, but is retiring effective December 31, 2016, and will be succeeded by Darren Woods. He is a member of the National Academy of Engineering.
On December 13, 2016, President-elect Donald Trump announced that Tillerson would be his nominee for Secretary of State. He is a longtime contributor to Republican campaigns. Tillerson's close business ties with Russian President Vladimir Putin have generated controversy, particularly in light of the revelations about Putin's business dealings in the Panama papers. He has previously been the director of the joint US-Russian oil company Exxon Neftegas.
Early life and education
Tillerson was born on March 23, 1952, in Wichita Falls, Texas, the son of Patty Sue (née Patton) and Bobby Joe Tillerson. Active in the Boy Scouts of America for most of his life, he earned the rank of Eagle Scout in 1965.Tillerson received a bachelor's degree in civil engineering from the University of Texas at Austin in 1975. During his time at UT Austin, he was involved with the Tejas Club, the Longhorn Band, and Alpha Phi Omega. In 2006 he was named a Distinguished Engineering Graduate.
Business career
Exxon
Tillerson joined The Exxon Company in 1975 as a production engineer. In 1989, Tillerson became general manager of the central production division of Exxon USA. In 1995, he became President of Exxon Yemen Inc. and Esso Exploration and Production Khorat Inc.In 1998, he became a vice president of Exxon Ventures (CIS) and president of Exxon Neftegas Limited with responsibility for Exxon's holdings in Russia and the Caspian Sea. In 1999, with the merger of Exxon and Mobil, he was named executive vice president of ExxonMobil Development Company. In 2004, he became president and director of ExxonMobil. On January 1, 2006, Tillerson was elected chairman and chief executive officer (CEO), following the retirement of Lee Raymond.
Tillerson re-established his position of chairman and chief executive officer during a shareholder meeting on May 28, 2008. The Rockefeller family sponsored a non-binding resolution to separate the CEO and chairman positions to maintain a system of checks and balances. The Rockefeller family also wanted Exxon Mobil to invest more in alternative energy, with Neva Goodwin saying in a public statement that the company "needs to reconnect with the forward-looking and entrepreneurial vision of my great-grandfather." However, the resolution did not obtain the necessary majority and Tillerson held on to both the chairman and chief executive officer job titles.
In 2009, Exxon Mobil acquired XTO Energy, a major natural gas producer, for $31 billion in stock. Some writers have stated that "Tillerson's legacy rides on the XTO Deal."
Ties with Russia
Tillerson with President Vladimir Putin of Russia, at the Kremlin, 2012
Tillerson is a friend of Igor Sechin,[20] the leader of the Kremlin's Siloviki (security/military) faction, who is "widely believed to be Russia's second-most powerful person" after President Putin.
In 2011, on behalf of ExxonMobil, Tillerson signed an agreement with Russia for drilling in the Arctic that could be valued up to $300 billion. The company began drilling in the Kara Sea in the Summer of 2014, and a round of sanctions against Russia introduced in September that year due to the Ukrainian crisis was to have brought the project to a halt in mid-September. Nevertheless, the company was granted a reprieve that stretched the window to work until October 10, which enabled it to discover a major field with about 750 million barrels of new oil for Russia.
In 2013, Tillerson was awarded the Order of Friendship by President Putin along with Claudio Descalzi, the head of the Italian oil major Eni, for their contribution to developing cooperation in the energy sector.
Ties with Kurdistan
In 2011, Tillerson, on behalf of ExxonMobil, signed a deal to develop oil fields in the autonomous region of Iraqi Kurdistan. The agreement was in defiance of Iraqi law, which forbids companies from dealing directly with Iraqi Kurdistan.Compensation
In 2012, Tillerson's compensation package was $40.5 million. It was $28.1 million in 2013, $33.1 million in 2014, and $27.2 million in 2015. Tillerson holds $245 million of Exxon stock.Other affiliations
Tillerson is also a trustee for the Center for Strategic and International Studies and the American Petroleum Institute. He is also a member of the Business Roundtable.He was a member of the executive committee of The Business Council for 2011 and 2012.
Tillerson is a longtime volunteer with the Boy Scouts of America, and from 2010 to 2012 was their national president, its highest non-executive position. Tillerson is an Distinguished Eagle Scout, and his father was a BSA executive. Tillerson is a long time supporter of the Boy Scouts of America and has said, "I think the highlight of my youth and adolescent years were my achievements in Scouting." In 2009, Tillerson was inducted into the Eagle Scout Hall of Fame of the Greater New York Councils. Ray L. Hunt, a close friend and the Chairman of Hunt Consolidated, told the Dallas Morning News, "To understand Rex Tillerson, you need to understand Scouting."
After the end of his term as as BSA president, he remained on the organization's National Executive Board. There he played a significant role in the board's 2013 decision to rescind the long-standing ban on openly gay youth as members. According to Center for Strategic and International Studies president John Hamre, Tillerson was instrumental in the change and "a key leader in helping the group come to a consensus."
Political involvement
Political views
Opposition to sanctions
Tillerson has stated that "We do not support sanctions, generally, because we don't find them to be effective unless they are very well implemented comprehensively and that's a very hard thing to do."Climate change and carbon tax
In 2010, Tillerson said that while he acknowledged that humans were affecting the climate through greenhouse gas emissions to some degree, it was not yet clear "to what extent and therefore what can you do about it."Tillerson also stated, "The world is going to have to continue using fossil fuels, whether they like it or not."
Tillerson stated in 2009 that he favors a carbon tax as "the most efficient means of reflecting the cost of carbon in all economic decisions—from investments made by companies to fuel their requirements to the product choices made by consumers." In October of 2016, less than two months before his nomination as Secretary of State, he gave a speech in which he reaffirmed that ExxonMobile had long viewed a carbon tax to be “the best policy of those being considered. Replacing the hodge-podge of current, largely ineffective regulations with a revenue-neutral carbon tax would ensure a uniform and predictable cost of carbon across the economy . . . allow market forces to drive solutions . . . maximize transparency, reduce administrative complexity, promote global participation and easily adjust” to new knowledge in climate science and in the policy consequences of various courses of action.
Critics contend that Tillerson's statements regarding climate change and a possible carbon tax were primarily business-savvy public relations and legislative strategies rather than genuine efforts to confront a global environmental problem. An article in The New York Times published after Tillerson's Secretary of State nomination suggested that ExxonMobil's embrace of a carbon tax in October of 2009 may have simply been an effort to avoid cap and trade legislation that was then under consideration in the U.S. Congress. And, a Time magazine article asserts that since Tillerson announced ExxonMobil's preference for a carbon tax, the giant oil company "has not made a carbon tax a focus of its massive lobbying efforts and has supported a number of candidates and organizations that oppose measures to tackle the [climate change] issue."
Support for the Trans-Pacific Partnership (TPP)
In 2013, Tillerson outlined his support for the Trans-Pacific Partnership (TPP), stating at the Global Security Forum: "One of the most promising developments on this front is the ongoing effort for the Trans-Pacific Partnership... The 11 nations that have been working to lower trade barriers and end protectionist policies under this partnership are a diverse mix of developed and developing economies. But all of them understand the value of open markets to growth and progress for every nation.”Free trade
Speaking in March 2007 at a Council on Foreign Relations event, Tillerson saidShould the United States seek so-called energy independence in an elusive effort to insulate this country from the impact of world events on the economy, or should Americans pursue the path of international engagement, seeking ways to better compete within the global market for energy? Like the Council's founders, I believe we must choose the course of greater international engagement ... The central reality is this: The global free market for energy provides the most effective means of achieving U.S. energy security by promoting resource development, enabling diversification, multiplying our supply channels, encouraging efficiency, and spurring innovation.
Government regulation
In an interview with The Wall Street Journal, Tillerson expressed his impatience with government regulation, stating "there are a thousand ways you can be told 'no' in this country."Education
In September 2013, Tillerson wrote an op-ed piece in The Wall Street Journal defending Common Core.Republican campaign fundraising and donations
Tillerson is a longtime contributor to Republican campaigns. According to the FEC records available online, he has given $442,284.50 in direct contributions since 2003, $72,200 in "joint fundraising contributions" and $5000 to a Super PAC. FEC records do not show any contributions by Tillerson to Democrats during this period.He has contributed to the political campaigns of George W. Bush, as well as Mitt Romney in 2012, and Mitch McConnell. He did not donate to Donald Trump's campaign. He donated to Jeb Bush's campaign during the 2016 Republican primaries.
Center for Strategic and International Studies
Tillerson serves on the board of trustees of the Center for Strategic and International Studies.Secretary of State consideration
Rex Tillerson was first recommended to Trump for the Secretary of State role by Condoleezza Rice, during her meeting with Trump in late November. Rice's recommendation of Tillerson to Trump was backed up by Robert Gates, three days later. Media speculation that he was being considered for the position began on December 5, 2016. On December 9, transition officials reported that Tillerson was the top candidate for the position surpassing Mitt Romney and David Petraeus. His nomination was reportedly being advocated by Steve Bannon and Jared Kushner.On the evening of December 10, the BBC cited NBC reports that "sources close to Mr Trump [were] ... saying that Mr Tillerson is likely to be named next week" and that former UN ambassador John Bolton "will serve as his deputy". On December 12, The New York Times reported that he had been chosen. On December 13, 2016, President-elect Donald Trump announced that Tillerson would be his nominee for Secretary of State.
Personal life
Tillerson is married to Renda St. Clair, and they have four children.[62][11] He resides in Irving, Texas.[11]Religion
Tillerson is a Christian. He and his wife donated $5,000–$10,000 to the National Association of Congregational Christian Churches in 2012.Miscellaneous
On February 20, 2014, news outlets reported that Tillerson and his wife joined opponents of a proposed water tower that could lead to fracking-related traffic near their homes. Plaintiffs included former U.S. House of Representatives Majority Leader Dick Armey and his wife. The Tillersons dropped out of the lawsuit after a judge dismissed their claim in November 2014.SOURCE: WIKIPEDIA
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