U.S. Secretary of State Tillerson made $27.4 million last year at Exxon: company

U.S. Secretary of State Rex Tillerson attends a news conference with Russian Foreign Minister Sergei Lavrov following their talks in Moscow
U.S. Secretary of State Rex Tillerson attends a news conference with Russian Foreign Minister Sergei Lavrov following their talks in Moscow, Russia, April 12, 2017. REUTERS/Sergei Karpukhin

April 13, 2017

By Ernest Scheyder

HOUSTON (Reuters) – U.S. Secretary of State Rex Tillerson received compensation worth $27.4 million last year when he was chief executive of Exxon Mobil Corp, the world’s largest publicly traded oil producer, regulatory filings showed on Thursday.

He and other senior executives got raises even though Exxon’s net income fell more than 50 percent in 2016 as the company, like many of its peers, tried to cut costs and weather a period of low oil prices.

The value of Tillerson’s compensation package last year rose about 0.5 percent largely due to a 4 percent boost in his salary to $3.2 million and an 8 percent jump in the value of stock awards to $19.7 million, an Exxon filing with the Securities and Exchange Commission showed.

The value of perquisites Tillerson received from Exxon last year, including personal security and a life insurance policy, rose 7 percent to $575,850.

Tillerson, 65, was nominated by then President-elect Donald Trump to be secretary of state in December. Tillerson retired from Exxon at the end of the year. He was confirmed by the U.S. Senate in early February.

His current post carries an annual salary of $207,800, according to the federal Office of Personnel Management tables.

As part of an ethics agreement when Tillerson assumed his government post, Tillerson forfeited unvested Exxon stock worth $2.8 million and potential for a bonus of $3.9 million. He also waived his right to retiree health benefits.

Tillerson’s vested Exxon stock was put into a trust worth about $180 million at the time, the proceeds of which will be paid out over the next decade, much in the same way proceeds are paid out to all Exxon retirees. The trust is prohibited from investing in Exxon.

Tillerson will not be allowed to work anywhere in the oil and gas industry for the next decade. If he does, the entire trust’s value would be donated to a charity that neither he nor Exxon chooses, according to the regulatory filings.

Darren Woods, Exxon’s CEO as of January, saw his compensation rise 64 percent last year, when he was Exxon’s president, to $16.8 million. Woods saw his base salary rise 36 percent to $1 million and the value of stock and stock option awards, his pension and company perquisites, including the cost of a home security system, rise as well.

(Reporting by Ernest Scheyder; Editing by Cynthia Osterman)

  • Roberto Martinez Jr

    And this is news……..WHY?????

  • Red

    So what’s the point of this article? He made a pile of money. So what?