8-KLeadership ChangesOther Events

EXXON MOBIL CORP 8-K Report, Executive Changes (Sep 27, 2007)

Filed September 27, 2007For Securities:XOM

Summary

This Form 8-K filing by Exxon Mobil Corporation (XOM) on September 27, 2007, primarily details changes in executive compensation and director compensation structures. A key update is the salary increase for Senior Vice President J. S. Simon, effective October 1, 2007. Additionally, the filing outlines amendments to director compensation, including a reduction in restricted stock grants starting in 2008, but an increase in the annual cash retainer. Certain committee-specific cash retainers for directors will be eliminated, except for the Audit and Compensation Committee Chairs. The report also addresses the amendment and restatement of the Mobil Corporation Management Retention Plan, noting no new awards have been granted since 1994 and that existing awards are cash-settled upon retirement. Furthermore, Exxon Mobil is terminating its 2001 Nonemployee Directors' Deferred Compensation Plan, with all account balances to be settled by early 2009. These adjustments reflect a strategic realignment of compensation and retention practices.

Key Highlights

  • 1Senior Vice President J. S. Simon's annual salary increased from $980,000 to $1,040,000, effective October 1, 2007.
  • 2Nonemployee director annual restricted stock awards will decrease from 4,000 to 2,500 shares, commencing in 2008.
  • 3The annual cash retainer for nonemployee directors will increase from $75,000 to $100,000, effective January 1, 2008.
  • 4Most annual cash retainers for nonemployee Board committee members and committee Chairs will be eliminated starting January 1, 2008, with exceptions for Audit and Compensation Committee Chairs.
  • 5The Mobil Corporation Management Retention Plan was amended and restated, with no new awards to be granted and existing awards settled in cash upon retirement.
  • 6The 2001 Nonemployee Directors' Deferred Compensation Plan is being terminated, with all balances to be returned to participants by January 2009.

Frequently Asked Questions

Effective in 2008, nonemployee directors will receive fewer restricted stock awards (2,500 shares, down from 4,000) but a higher annual cash retainer ($100,000, up from $75,000). Most committee-specific cash retainers are being eliminated, except for the Chairs of the Audit and Compensation Committees who will retain an additional $10,000 retainer.

The plan was amended and restated. No awards have been granted since 1994 and none will be granted in the future. Any existing stock unit awards held by former executives will be settled in cash upon their retirement.

No, the 2001 Nonemployee Directors' Deferred Compensation Plan is being terminated. Participants will cease making additional deferrals by the end of 2007, and all account balances will be returned to them no later than January 2009.

Yes, the annual salary for Senior Vice President J. S. Simon was increased from $980,000 to $1,040,000, effective October 1, 2007. He is an 'at-will' employee without an employment contract.