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ExxonMobil, Rex Tillerson Reach Deal to Cut Ties

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On Tuesday, oil giant ExxonMobil (XOM - Free Report) and President-elect Donald Trump’s pick for secretary of state, Rex Tillerson, have agreed to cut all ties and comply with conflict of interest requirements as the former chairman and CEO awaits confirmation.

The retirement deal was reached with Exxon’s board of directors, and is worth about $180 million. If Tillerson is confirmed as secretary of state, the value of over 2 million deferred XOM shares that he would have received over the next decade would be placed in an independently managed trust account, said Exxon in a statement.

Tillerson would also surrender “entitlement” to over $4.1 million in cash bonuses, scheduled to pay out over the course of the next three years. The former CEO has also committed to the State Department, separate to the deal with Exxon, to sell more than 600,000 shares in ExxonMobil he currently owns if he is confirmed for the role, and to not work in the oil and gas industry for 10 years.

A confirmation hearing is tentatively scheduled for next week, and Tillerson’s extensive business ties to world leaders, especially Russian President Vladimir Putin, are expected to be a focus point.

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