Tillerson and Exxon part ways; $180M retirement package

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  • FILE - In this Friday, March 27, 2015, file photo, Exxon Mobil CEO Rex Tillerson delivers remarks on the release of a report by the National Petroleum Council on oil drilling in the Arctic, in Washington. Tillerson, the nominee of President-elect Donald Trump for secretary of state, is severing ties with Exxon Mobil through a $180 million retirement package ahead of his Senate confirmation hearing. (AP Photo/Evan Vucci, File)

    FILE - In this Friday, March 27, 2015, file photo, Exxon Mobil CEO Rex Tillerson delivers remarks on the release of a report by the National Petroleum Council on oil drilling in the Arctic, in Washington. Tillerson, the nominee of President-elect ... Donald Trump for secretary of state, is severing ties with Exxon Mobil through a $180 million retirement package ahead of his Senate confirmation hearing. (AP Photo/Evan Vucci, File) (The Associated Press)

  • Secretary of State-designate Rex Tillerson pauses during a meeting with Senate Majority Leader Mitch McConnell of Ky. on Capitol Hill in Washington, Wednesday, Jan. 4, 2017. (AP Photo/Evan Vucci)

    Secretary of State-designate Rex Tillerson pauses during a meeting with Senate Majority Leader Mitch McConnell of Ky. on Capitol Hill in Washington, Wednesday, Jan. 4, 2017. (AP Photo/Evan Vucci) (The Associated Press)

  • Secretary of State-designate Rex Tillerson meets with Senate Majority Leader Mitch McConnell of Ky. on Capitol Hill in Washington, Wednesday, Jan. 4, 2017. (AP Photo/Evan Vucci)

    Secretary of State-designate Rex Tillerson meets with Senate Majority Leader Mitch McConnell of Ky. on Capitol Hill in Washington, Wednesday, Jan. 4, 2017. (AP Photo/Evan Vucci) (The Associated Press)

Rex Tillerson, the nominee of President-elect Donald Trump for secretary of state, is severing ties with Exxon Mobil through a $180 million retirement package ahead of his Senate confirmation hearing.

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Tillerson was expected to step down as CEO of Exxon Mobil Corp. in March when he turned 65, the company's mandatory retirement age. Exxon said in a regulatory filing Wednesday that Tillerson has agreed to give up approximately 2 million unvested shares. In exchange, the company has agreed to make a cash payment equal to the value of those shares into a trust.

Tillerson, who worked for Exxon for more than 40 years, is giving up about $7 million in compensation and benefits that he would have received if he had he stayed until March.