Irving, Texas – With his company having earned $8.4 billion during the first quarter, Rex Tillerson appears to be in an enviable position as he presides over the first Exxon Mobil Corp. annual meeting since he became chairman and chief executive. That profit won’t necessarily shield Tillerson from criticism from shareholders, particularly on the oil company’s environmental record.
But Tillerson won’t be a novice at fielding complaints about Exxon when shareholders meet in Dallas today – for months, he has been hearing rebukes from public officials and private citizens about the soaring cost of gasoline.
In an interview with The Associated Press, Tillerson said he understands nerves are raw about gas prices pushing $3 a gallon while his company consistently posts record quarterly profits. And he knows lawmakers are simply responding to voter concern when they demand accountability at a Senate Judiciary Committee meeting, as happened in March.
But, Tillerson said, “I don’t apologize for our success.”
A man groomed for the position he now holds, the Texas-born Tillerson, 54, succeeded Lee Raymond on Jan. 1. So far, he has used his engaging demeanor – a change from Raymond’s more abrupt tone with analysts and shareholders – to show critics a warmer side of Exxon.
“I’d like to meet with him sometime,” said California Democratic congresswoman Lois Capps, who has voted against pursuits of some domestic fields by big oil companies.
Tillerson took over as oil prices continued climbing amid concerns ranging from recent hurricane forecasts to ongoing geopolitical tensions. So he has spent time with lawmakers, imploring them to take a long-term view of the country’s energy policy, saying there are no immediate cures for price spikes in a volatile market. And he has visited leaders in Indonesia and the United Arab Emirates, securing long-term production deals.
He said he has made sure Exxon is ready for this year’s hurricane season, having watched Hurricanes Katrina and Rita slam the Gulf of Mexico and destroy 113 platforms last year. Tillerson is likely to reassure shareholders today that the company is prepared.
But some shareholders will be pressing the CEO on the environment – and asking when Exxon will follow the lead of competitors Royal Dutch Shell PLC and BP PLC by integrating cleaner alternative energy into its portfolio.
Environmentally oriented shareholders are likely to bring the issue up at today’s meeting, says Rachel Harold of the Coalition for Environmentally Responsible Economies.
“We are not asking Exxon to get out of the oil business, and we are not asking them to change on a dime,” Harold said. “We want them to create healthy ways to be successful 20 and 30 years down the line when the world looks different.”
