Exxon CEO has reason to smile

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 CEO. That huge 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 on Wednesday — for months he’s 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 as happened in March.

But, “I don’t apologize for our success,” Tillerson said.

A man groomed for the position he now holds, the Texas-born Tillerson, 54, succeeded Lee Raymond on Jan. 1. So far, he’s 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’s spent time with lawmakers, imploring them to take a long-term view of the country’s energy policy, saying there are no immediate cures to price spikes in a volatile market. And he’s visited world leaders in Indonesia and the United Arab Emirates, securing long-term production deals.

He said he’s 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 Wednesday 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 to Wednesday’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.”

Exxon said it’s not dismissing the value of alternative energy, citing the company’s $100 million contribution to Stanford University’s Global Climate and Energy Project. But even as alternatives are being developed, they still are not as readily available as oil and gas, Tillerson said.

Another issue expected to come up Wednesday is the retirement package given Raymond upon his departure; the package totaled nearly $400 million and included a $98 million pension payout.