Tillerson’s Exxon-Ethics Plan Has $72 Million Tax Advantage
- Proposal for removing conflicts sets up independent trust
- Specialists question whether tax authorities will sign off
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The exit package Exxon Mobil Corp. has agreed to pay Rex Tillerson if he’s confirmed as secretary of state is structured to preserve roughly $180 million in deferred compensation for him -- and might let him avoid an immediate federal income tax bill of as much as $72 million, according to tax specialists who have reviewed the plan.
The arrangement was designed to sever Tillerson’s ties to the global oil company he led since 2006 and allow him to comply with federal ethics law. Under the plan, Exxon would make a cash payment into an independent trust managed by Northern Trust Corp. for Tillerson. In exchange, Tillerson, 64, would give up his rights to more than 2 million restricted shares and restricted stock units that haven’t vested yet.