Rex Tillerson Scores $180M Retirement Package From Exxon Mobil Corporation (XOM)

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Rex Tillerson’s retirement package for leaving Exxon Mobil Corporation (NYSE:XOM) is worth $180 million.

Rex Tillerson, Exxon Mobil Corporation, XOMRex Tillerson is Donald Trump’s current pick to be his Secretary of State. If he is confirmed for this role, Tillerson will leave Exxon Mobil Corporation so that there is no conflict of interests while he serves the United States of America.

The $180 million retirement package is being awarded to Rex Tillerson for the 2 million deferred XOM shares that would have received over the next 10 years. The value of these shares are being sent to an independently managed trust.

The agreement means that Rex Tillerson will receive payments from this trust over the same span of time that he would have received the XOM shares. The trust also isn’t allowed to make investments in Exxon Mobil Corporation.

The payment to this trust is based on the volume-weighted average price per share for XOM stock. Guidance from federal ethics regulators has the value being reduced by about $3 million. Tillerson will also lose out on $4.1 million in cash bonuses that were set for the next three years.

There are also restrictions on the trust that keep Rex Tillerson from working in the oil or gas industries for the next 10 years. If he breaks these rules, then the trust if forfeit. If this happens, the money from the trust will be sent to charities fighting poverty and disease in developing countries. Neither Tillerson or Exxon Mobil Corporation will control which charities the money goes to.

While not part of the agreement, Rex Tillerson has also said he will sell his current shares in Exxon Mobil Corporation if he gets the Secretary of State. He currently holds more than 600,000 XOM shares.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/01/rex-tillerson-exxon-mobil-corporation-xom/.

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