Exxon's Rex Tillerson Is Top Candidate for Secretary of State
December 09 2016 - 4:51PM
Dow Jones News
By Peter Nicholas and Bradley Olson
Exxon Mobil Corp. Chief Executive Rex Tillerson has emerged as
the leading candidate to become President-elect Donald Trump's pick
for secretary of state, according to two transition officials,
marking the latest twist in a multi-week search for the nation's
top diplomat.
Mr. Tillerson moved ahead of other candidates, including former
New York Mayor Rudy Giuliani and 2012 presidential candidate Mitt
Romney, who each have had multiple conversations with Mr. Trump
about the job. Mr. Tillerson is viewed by some of Mr. Trump's
advisers as a mold-breaking pick who would bring an executive's
experience to the diplomatic role, a person involved in the process
said.
Messrs. Trump and Tillerson met on Tuesday and are expected to
speak again over the weekend, the person said. Mr. Trump has said
he would like to make a formal announcement about his State
Department pick next week.
If Mr. Trump selects Mr. Tillerson, it would add a seasoned
business executive to a team that already includes three retired
generals. As Exxon's CEO since 2006, Mr. Tillerson, 64 years old,
could leverage existing relationships with numerous world
leaders.
Among those considered for the post, Mr. Tillerson has perhaps
the closest ties to Russian President Vladimir Putin, having
negotiated a 2012 energy partnership deal with Russia that Mr.
Putin said could eventually be worth as much as $500 billion. In
2012, the Kremlin bestowed the country's Order of Friendship
decoration on Mr. Tillerson.
This pre-existing relationship with Mr. Putin complements Mr.
Trump's push to improve ties between the U.S. and Russia. A number
of Republicans have urged Mr. Trump to be wary of working closely
with Russia, warning that Russia is trying to expand its influence
in a way that runs counter to U.S. interests in places such as
Ukraine and Syria.
Exxon has a large global presence, but this could introduce
sticky conflicts of interest if Mr. Tillerson is selected. The
company explores for oil and gas on six of the world's continents
and has operations in more than 50 countries.
Mr. Tillerson, who is slated to retire next year, has a pension
worth tens of millions of dollars, a value that could potentially
be affected by State Department activities. For example, he could
benefit from such potential department actions as the lifting of
sanctions on Russia.
The Obama administration and European allies have imposed
several rounds of economic sanctions against Russia following its
annexation of Crimea in 2014. The Obama administration also has
accused the Kremlin of backing militants in eastern Ukraine even
after the annexation of Crimea.
As Exxon's CEO, Mr. Tillerson has spoken against sanctions on
Russia. Mr. Tillerson's work there dates to when Mr. Putin rose to
power after Boris Yeltsin's resignation.
"We always encourage the people who are making those decisions
to consider the very broad collateral damage of who are they really
harming with sanctions," he said at the company's annual meeting in
May 2014.
Mr. Tillerson grew up in Texas and in 1975 joined Exxon, where
he has spent his entire career. He has long been closely affiliated
with Republican politicians and the Boy Scouts of America, but he
has never worked in government.
Meanwhile, Mr. Trump is expected to tap Rep. Cathy McMorris
Rodgers (R., Wash.) to lead the Interior Department, according to a
person familiar with the matter.
If confirmed by the Senate, Ms. McMorris Rodgers, would lead Mr.
Trump's efforts to open up federal lands and waters to fossil-fuel
development and reverse environmental policies the Obama
administration has pursued.
Since her first election to Congress in 2004, Ms. McMorris
Rodgers has risen in the ranks and is the now
fourth-highest-ranking Republican in the House and the
highest-ranking GOP woman in Congress. She also serves on the
Energy and Commerce Committee.
--Amy Harder contributed to this article.
(END) Dow Jones Newswires
December 09, 2016 16:36 ET (21:36 GMT)
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