Exxon's Tillerson, Looking at State Department, Anoints A Successor

HOUSTON, TX — When Donald Trump came calling, Exxon CEO Rex Tillerson had at least one important thing taken care of: knowing the name of the man who would replace him as the head of the world's largest publicly traded oil company.

That's because Darren Woods, Exxon president, was already in line to move up the chain. Tillerson's nomination as secretary of state did nothing but accelerate the change at Exxon. Woods, president since January 2015, will take over from Tillerson on Jan. 1, 2017, instead of in March, when Tillerson turns 65, Exxon's mandatory retirement age.

Wood, an electrical engineer by training, has been with Exxon for 23 years and is taking over at the energy giant during a period beset with its fair share of challenges. Fadel Gheit, an analyst with Oppenheimer & Co. who has followed Exxon for decades, said that the new CEO will have his hands full.

"This downturn is going to be a lot more serious than many people think," Gheit said. "And climate change will have to be taken very seriously, as it will impact Exxon's business."

In an announcement, the company's board of directors thanked Tillerson for his service, and wished him luck on his nomination.

“We thank Rex for his leadership, service and dedication to Exxon Mobil," the board said. “He led the company with integrity and honor, ensuring that safety and environmental protection were at the forefront of everything we do, generating value for shareholders and highlighting the impressive accomplishments of the company’s diverse workforce throughout the world. We know that his service to the nation as secretary of state will be equally successful and distinguished.”

Tillerson was paid about $24.3 million in 2016. His net worth is reported to be $150 million, and he holds a $70 million pension plan. Tillerson joined Exxon in 1975 as a production engineer and held various senior roles in the company, including executive vice president of ExxonMobil Development Company.

As CEO, Tillerson inked a multi-billion-dollar deal to discover oil in Russia's Arctic region, a project that suffered a setback when sanctions were imposed on Russia in response to it aggressions in Crimea. Tillerson's relationship with Russia's president, Vladimir Putin, is certain to be a major topic of discussion at confirmation hearings next year.

Exxon, which lost its lost its AAA credit rating earlier this year, has cash reserves of $5 billion and a stock-market value of around $375 billion. Its stock price has risen 16 percent this year.

— Photo of Darren Woods courtesy Exxon