Rumors continue to percolate that President-elect Trump will nominate Rex Tillerson, the 64 year old CEO of ExxonMobil XOM +0.77%, to be Secretary of State. Unlike recent top diplomats, Tillerson has no experience in government. The Exxon executive is neither a politician, a career public servant, a general or an academic . There are several reasons, however, why his unique experience would make him an unusually effective Secretary of State.
- Negotiation: He is an experienced and accomplished negotiator. Historically, the secretary of state need not lead negotiations at the table, as Secretary Kerry appears to have done in the nuclear negotiations with Iran, but he must be in charge of the negotiations. Tillerson has experience running negotiations for everything from land-use rights to labor issues to transportation deals. Under his leadership, Exxon has negotiated with foreign and U.S. governments and major international conglomerates.
- Management: As the chief executive of a $370 billion global company with operations in approximately 50 countries, Tillerson has experience managing a large operation. The scope and range of operations at Exxon is tremendous, including: oil exploration, construction, logistics, high technology research and development, marketing, sales, human resources, compliance and, of course, pumping oil. The Secretary of State runs an institution with a budget of $65.9 billion that operates in nearly every country in the world and includes a wide array of operations, including: visa services, services for Americans abroad, national security participation, trade promotion, diplomatic security and, of course, high level diplomacy. Compared to a politician, academic or diplomat, Tillerson clearly has the managerial experience.
3. World Leadership: Tillerson has diplomatic experience – representing Exxon instead of the United States . He knows world leaders and understands their motivations. Tillerson has had to address the concerns of foreign leaders, incentivize them to work with him. This mirrors U.S. needs: a top diplomat who realistically addresses the motivations of foreign leaders and convinces them to work with—not against—the U.S.
