ExxonMobil (NYSE: XOM) has plugged a gap in its C-suite. The company announced that its current president, Darren Woods, will become chairman and CEO, effective Jan. 1. Woods is replacing Rex Tillerson, who has been nominated to be secretary of state by President-elect Donald Trump.
Tillerson’s move to the federal government will put an end to a long career at the company. He has been with ExxonMobil and its predecessor entities for 41 years, starting his tenure as a production engineer. He gradually rose through the managerial ranks to become chairman and CEO at the beginning of 2006.
In a way, Tillerson’s departure is a slight hastening of the inevitable. He turns 65 in March, at which point he would have been scheduled for mandatory retirement from the company. That is ExxonMobil’s age limit for the CEO position.
Although the 51-year old Woods does not have the long tenure of his predecessor, he is nevertheless an ExxonMobil veteran. He joined it in 1992, and like Tillerson advanced through several levels, occupying positions such as the manager of the company’s external relations. He was named president of ExxonMobil in December 2015, and gained a seat on the board of directors the following month.
The early days of Woods’ tenure will be challenging. The oil industry as a whole has been suffering from a prolonged period of depressed prices, although ExxonMobil has not fared as poorly as many others in the sector. Meanwhile, Tillerson’s position as America’s top diplomat will sharply increase scrutiny of the company’s operations, and its relations with the government.
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