1. External Environment: CEO Rex Tillersons pay rose 15% to 40 million this May, according to research from Reuter.

. Only 70% of Exxon share holders voted in favor of CEOs executive compensation, as opposed to 78% last year and 91% two years ago. So approval of shareholders is eroding slowly corresponding to the increase in CEO pay. According to an article in Business Week, Exxon said that Tillerson received a pay raise because he has made good returns for his shareholders. U.S. natural gas prices have really taken a toll on big oil producers like Exxon. However, oil prices have still helped Exxon make big profits. According to a study done by Think Progress, many top corporations set performance targets ridiculously low so they can receive bonuses when they easily surpass the goal. Some companies have even been known to tack on extra profits that simply arent there so bonuses get out. This hurts the taxpayer because executive compensation in the form of stock is tax deductible. A new report by IPS and Campaign for Americas Future says that CEOs in the U.S. are pushing huge cutbacks in government programs that help the middle class and at the same time pocketing subsidies. The Occupy Wall Street movement in 2011 was an impactful movement that criticized the large salaries of top executives in the midst of staggering salaries for lower level employees. With a high unemployment rate and an unhealthy economy, many are outraged by big business getting high pay. National and international groups like the German Corporate Government Commission and authors in the UK and Oregon have all proposed a maximum wage, or a cap on CEO salaries. At the end of 2012, a campaign called Exxon Hates Your Children, emerged to raise awareness of Exxons environmental impact as well as their large government subsidies. Oil Change International was the group behind the campaign. According to CNN, in 2013, top executives earned 354 times more than the average American worker. The numbers come from a study done be AFL-CIO. Unions are proposing Wall Street reforms and want to pass a law that requires companies to publish the pay discrepancy between employees and management. According to Business Week, Tillerson received an annual salary of $2.4 million this year, which included a bonus of $4.4 million and stock awards worth $17.9 million. He also received $519,230 in miscellaneous compensation, which includes life insurance, personal security, personal use of company aircraft, and financial planning. Data released by Bloomberg reported that the CEO-to-worker pay ratio is up 1,000% since 1950. The Huffington Post said the Dodd-Franklin financial reform law passed nearly three years ago still hasnt been put in effect by the SEC. The law required companies to publish their CEO-to-worker ratio annually.

According to the Bureau of Labor Statistics, national unemployment is 7.3% as of August 2013. Because of this high rate, may people are becoming angry with high pay for management in a struggling economy, with many people are out of work. Other companies have said that paying their top executives lots of money encourages them to do what is in the best interest of their shareholders. Exxon is actually having more issues with criticism over pollution and gay rights than anything else.

2. INDUSTRY ORGANIZATIONS/ COMPANIES Oil companies output per day/ biggest companies based on production: The Middle East, known for its vast fields of oil, still houses the two biggest oil producers in the world. Saudi Aramo produces on average 12.5 million barrels of oil a day. Coming in a distant second, NIOC produces 6.4 million barrels a day. Exxon comes in at 5.3 million barrels produced a day. Following Exxon, in order of number of barrels produced a day, is: PetroChina, BP, Royal Dutch Shell, Pemex, Chevron, Juwait Peroleum Corporation and ADNOC (wiki graph) Biggest companies (revenue): Measuring a companies size in terms of yearly revenue can paint a different picture of the success and power of oil companies. A list of the top-ten oil producers (figures in billions): o Royal Dutch Shell (Netherlands)= 484,489 o Exxon Mobil (United States= 452,926 o British Petroleum (United Kingdom)= 386,463 o Sinopec (China)= 375,214 o China National Petroleum (China)= 352,338 o Chevron (United States)= 245,621 o Conoco Phillips (United States)= 237,272 o Total (France)= 231,580 o Gazprom (Russia)= 157,830 o ENI (Italy)= 153,676 o (wiki graph re Fortune Global 500 http://en.wikipedia.org/wiki/List_of_largest_oil_and_gas_companies_by _revenue) List of countries by oil production: o Russia (13.28% share)= 10,900,00 barrels a day o Saudi Arabia (12.65% share)= 9.900,000 barrels a day o United States (9.97% share)= 8,453,000 barrels a day o Iran (4.77% share)= 4,231,000 barrels a day o China (4.56% share)= 4,073,000 barrels a day o Canada (3.90% share)= 3,592,000 barrels a day o Iraq (3.75% share)= 3,400,000 barrels a day o United Arab Emirates (3.32% share)= 3,087,000 barrels a day

o Venezuela (4.74% share)= 3,023,000 barrels a day o Mexico (3.56% share)= 2,934,000 barrels a day o According to IEA the top ten oil-producing countries were responsible for producing 63% of the worlds oil production. o (according to report by International Energy Agency (IEA http://en.wikipedia.org/wiki/List_of_countries_by_oil_production) ) OPEC: OPEC stands for the Organization of the Petroleum Exporting Countries. The founding members, Iran, Iran, Kuwait, Saudi Arabia and Venezuela created the oil-cartel in 1960. OPECs mission is to OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. (OPEC WEBSITE) OCED:

o Source: Organization for Economic Cooperation and Development and BP statistical review of world energy, authors calculations (http://www.fool.com/investing/general/2013/09/04/dont-placeyour-bets-on-peak-oil-demand-just-yet.aspx) Countries of the world, mapped according to the amount of oil they produce (according to World Factbook CIA http://en.wikipedia.org/wiki/File:Oil_producing_countries.2010.png)

 Who Owns Big Oil?(Holdings of Oil Stocks, 2011) o 20.6% Asset Management Companies (Including Mutual Funds) o 31.2% Pension Funds o 21.1% Individual Investors o 17.7% IRAs o 6.6%Other Institutional Investors o 2.8%Corporate Management of Oil Companies o Source: Who Owns Americas Oil and Natural Gas Companies, SONECON, October 2011. Sources: Based on company filings with the federal government as reported by U.S. Census Bureau and Standard & Poors Research Insight. And Putting Earnings into Perspective: Facts for Addressing Energy Policy, 2012) Third Quarter 2011 Earnings by Industry(cents of net income per dollar of sales) o 22.2 Pharmaceuticals and Medicines o 21.8 Computer and Peripheral Equipment o 20.1 Beverage and Tobacco Products o 15.1 Chemicals o 12.6 Electrical Equipment, Appliances, and Components o 9.2 All Manufacturing o 8.9Aerospace Products and Parts o 8.7 Apparel and Leather Products o 8.7 Machinery o 6.8Furniture and Related Products o 6.7 Oil and Natural Gas o 6.6 Motor Vehicles o 6.0 Paper o 5.3 Plastics and Rubber Products o 3.9Textile Mills and Textile Product Mills o 2.2 Iron, Steel, and Ferroalloys

o 1.9 Food Sources: Based on company filings with the federal government as reported by U.S. Census Bureau and Standard & Poors Research Insight And Putting Earnings into Perspective: Facts for Addressing Energy Policy, 2012) Source: Bloombberg Businessweek (January 24-30, 2011).

Source: Who Owns Americas Oil and Natural Gas Companies, SONECON, October 2011.

INDUSTRY GROWTH / GROWTH PATTERNS

o Monthly crude oil production in the United States is expected to exceed the amount of U.S. crude oil imports later this year for the first time since February 1995, the EIA said. The gap between monthly

U.S. crude oil production and imports is projected to be almost two million barrels per day by the end of next year. o http://www.ibtimes.com/us-produce-more-crude-oil-2013-itimports-department-energys-energy-informationadministration PER CAPTIA CONSUMPTION All time peak of oil consumption was 2.28 liters per day in 1979. The most recent peak was in 2005 at 1.81 liters per day. In 2013 we have seen an average of 1.7 liters per day. Experts expect consumption to dip even farther as the worlds population increase and oil production will stay relatively flat. Per capita crude oil consumption (in liters) per day:

GROWTH POTENTIAL Has oil peaked? A slight decrease in oil demand from OCED countries have lead some to believe demand for oil has reached its peak. However, when

placing demographics into the discussion, the demand could possibly only get higher o Right now, oil demand for the two categories is roughly even at about 45 million barrels of oil per day. But that is just about the only metric where these two groups of nations are equal. There are 4.72 times more people in the developing world, which means that per capita use of oil is considerably smaller than that of developed nations. (http://www.fool.com/investing/general/2013/09/04/dont-placeyour-bets-on-peak-oil-demand-just-yet.aspx o As developing economies advance, it is assumed that they will consume more oil. So for oil demand to remain flat, developing nations would need to reduce their consumption by an equal amount. It can be hard to conceptualize very large numbers like global GDP and world oil demand, so let's make a comparison that almost everyone can understand: drinks. If every person in the developing world were to increase their oil consumption by one shot glass a day, those in developed nations would in turn need to use 1 beer can of oil less in order for global demand to remain flat. o We all have a tendency to use the US and China as the bellwethers for the developed and developing world, respectively. The thing is, there are many places in the developing world that are not going to behave like China. In fact, based on projections from the OECD, China's population is expected to peak in 2025 and then decline while the rest of the developing world is expected to grow by 2 billion people. More importantly, the places we expect to see the largest gains in population growth have some of the lowest fuel consumption. o Today, over 60% of the population in Africa use biomass such as firewood as their primary energy source, and a study done at Havard's John F. Kennedy School of Government found that 90% of the rural Indian population still relied on biomass as the primary cooking fuel. As population in both of these regions grow and living conditions improve, oil demand will most definitely follow. o According to The Economist, over 1 billion people have been taken out of extreme poverty over the past 20 years, and the UN's Millennium Development Goals will look to remove another billion. Freedom from the shackles of gripping poverty will ultimately require more energy resources, though. We have made major strides in the developed world to replace some of our hydrocarbon use with alternatives, but global demand for oil will continue to rise as populations increase and living conditions improve. o CONCLUSION: If we were to assume per capita oil consumption were to remain flat between now and 2030, then the projected increase in population would require an increase in production equal to both ExxonMobil (NYSE: XOM ) and Chevron (NYSE: CVX ) more

than tripling their current oil production over that time frame...just to maintain the status quo. HISTORY Imperial Russia was the first area to successfully produce oil. In 1825 the Russians produced 3,500 tons of oil. In 1848 the Russians built a pipeline to transport oil throughout the nation. Refined oil was first used in artificial asphalt, machine oil and lubricants and kerosene lamp. The kerosene lamp was the first major product to help the demand for refined oil to grow. The United States first oil corporation was organized to develop oil found floating on water neat Titusville, Pennsylvania. Edwin L. Drake located oil in the surrounding area an don August 27, 1859 oil was struck at a depth of sixty-nine feet. This was the first time oil was retrieved using a drill. Modern oil drilling began in America in West Virginia and Pennsylvania in the 1850s. John D. Rockefeller took advantage of the oil boom and built a small oil refinery. He created the Standard Oil Company. By 1870 Standard Oil had bought out all competitors and became the dominant oil producer. Rockefeller developed the use of oil pipelines, which were an efficient way to transport oil. In 1937 Chevron Corporation (then Pure Oil Company) and partner ExonMobil (then Superior Oil Company) constructed a platform to start drilling off-shore in Louisiana. Developments in off-shore drilling lead to more access to oil and the ability to produce more. After World War II, countries in the Middle East became the leading oil producers in the world. Since WW II there have been many developments in oil production such as: deep-water drilling and drill ships. Source: http://www.history.com/topics/oil-industry TECHNOLOGICAL ADVANCES According to the Organization of Petroleum Exporting Countries, technological advancements have helped to nearly double Ultimately Recoverable Resource estimates since 1980. Meanwhile, improvements in drilling, and in particular directional and horizontal drilling, have reduced the surface impact of oil and gas operations, while allowing for optimum recovery of reserves. In addition, developments in 3D modelling allow for more accurate exploration, targeting reserves with guaranteed high production volumes, meaning fewer wells have to be drilled on the surface. Aside from the E&P imperatives for technological advancements in the oil and gas industry, they can also help companies deal with the issues they will face in the coming decades. Technology has its role to play in helping the oil and gas industry in reducing its greenhouse gas emissions, at a time when carbon cuts are high on the global community's agenda. In the wake of the BP oil spill in the Gulf of Mexico, technology may also be looked upon to enhance safety for those working within the industry.

In its World Oil Outlook 2009, OPEC highlights that carbon capture and storage (CCS) technology is likely to be extremely important to the oil and gas industry in the coming years. Speaking on the subject of developments within the oil and gas industries, OPEC said: "In particular, the focus needs to be on the early development and deployment of cleaner fossil fuel technologies, such as carbon capture and storage." OPEC believes that CCS has the potential to aid the oil and gas industries mitigate its carbon emissions. The technology has been gaining much press of late and forms part of the UK's new coalition government's climate change policy. Using CCS techniques for enhanced oil recovery (EOR) holds particular potential for the oil and gas industry. The practice involves carbon dioxide being compressed and forced down into reservoirs, which pushes oil to nearby production wells, while sealing the gas underground. Exxon Mobil is among the major E&P firms using the technology, which it claims has been put to particular use in the Permian Basin in Texas. According to Exxon, 25 percent of production in the region is a result of EOR, which has allowed for the recovery of one billion extra barrels of oil. Technology also has a significant role in play in the extraction of oil and gas from deepwater reserves, and in ensuring the safety of those charged with doing so. This is particularly true in Brazil, which is blessed with large numbers of hydrocarbon reserves, many of which are located in remote deepwater locations. OPEC observed that important discoveries, including Roncador, Peregrino, PapaTerra, Whale Park fields, Tupi, Guara [and] Iara will need "major investment and cutting edge production technology" to be realised. However, it is perhaps in the Unites States where deepwater technology is receiving the highest levels of scrutiny, following BP's blow-out at the Macondo well earlier this year. United Statesgovernment officials claimed that better instruments and sensors are needed to diagnose issues with deepwater rigs and prevent further loss of life Interior secretary Ken Salazar is quoted in a report from Reuters as saying: "We must eliminate the gap between the technology and knowledge that allows oil and gas companies to tap reserves beneath 5,000 feet (1,524 metres) of water - and the technologies and strategies that allow us to deal with emergencies at those depths." BP has now announced it is joining the Marine Well Containment Company, alongside Chevron, ConocoPhillips, ExxonMobil and Shell to build a system for use by the entire United States upstream oil and gas industry which "exceeds current response capabilities". http://www.oilandgasiq.com/oil-drilling-gas-drillingdevelopment/articles/the-outlook-for-technological-advancements/

TRENDS According to recent analyses of the 2008 economic crash, the price of oil has been directed related to the performance of the U.S economy. The success of the U.S. economy largely relies on the price and production of oil. o For most of the last century, cheap oil powered global economic growth. But in the last decade, the price of oil has quadrupled, and that shift will permanently shackle the growth potential of the worlds economies. The

countries guzzling the most oil are taking the biggest hits to potential economic growth. Thats sobering news for the U.S., which consumes almost a fifth of the oil used in the world every day. Not long ago, when oil was $20 a barrel, the U.S. was the locomotive of global economic growth; the federal government was running budget surpluses; the jobless rate at the beginning of the last decade was at a 40-year low. Now, growth is stalled, the deficit is more than $1 trillion and almost 13 million Americans are unemployed. And the U.S. isnt the only country getting squeezed. From Europe to Japan, governments are struggling to restore growth. But the economic remedies being used are doing more harm than good, based as they are on a fundamental belief that economic growth can return to its former strength. Central bankers and policy makers have failed to fully recognize the suffocating impact of $100-a-barrel oil. Running huge budget deficits and keeping borrowing costs at record lows are only compounding current problems. These policies cannot be longterm substitutes for cheap oil because an economy cant grow if it can no longer afford to burn the fuel on which it runs. The end of growth means governments will need to radically change how economies are managed. Fiscal and monetary policies need to be recalibrated to account for slower potential growth rates. (Source: http://www.bloomberg.com/news/201209-23/how-high-oil-prices-will-permanently-cap-economic-growth)

Because of high oil prices and the fear the world will run out of fossil fuels, many professionals believe natural gas will take the place of gasoline as the largest transportaion fuel. Sourc(e: 2013 Deloitee Report: Surveying energy attitudes: Industry insiders and the publics outlook on the future of U.S. oil and gas)

DISTRIBUTION PATTERNS Who exports the most? According to recent research, the central hub of oil exporting is located in the Middle East. While the United States has increased the amount of oil they produce, they still consistently consumer more than they can keep up with.

http://librairie.immateriel.fr/fr/read_book/9789264055926/e9789264055926_c10 .. Source: BP 2006 Sahel and West Africa Club/OECD 2007

CONTROL & REGULATION History and background o Oil markets have long-term price cycles. The peaks and troughs of those cycles have often coincided with demands for federal intervention, but those interventions have usually made cycles more, not less, severe. In the 1920s, oil prices were peaking and many commentators believed that oil supplies were running out. Congress was confronted by requests to augment supplies, so it enacted a generous depletion allowance for producers in 1926, which increased investment returns substantially. This change induced additional exploration activity, and subsequently the discovery of large new oil reservoirs. o During the next decade, the situation was reversed, with prices low and dropping. That led to demands for more "orderly" competition and oil price supports. Rather than repealing the supply-enhancement policies enacted during the 1920s, Congress left them intact and enacted a pricesupport system. Similar cycles occurred in the 1950s and 1970s. In each case, Congress enacted policies that overreacted to the current peak or trough and failed to quickly repeal the policies when petroleum prices retreated from their extreme highs or lows. o Beginning in the late-1920s, different groups in the oil industry proposed policy measures to help prop up prices. Initially, the major oil companies

supported industry planning similar to that used during World War l. The war experience left many corporate leaders favorably disposed toward managed capitalism under the protection of the state. Federal intervention increased enormously in the 1930s. The National Industrial Recovery Act of 1933 (NIRA), which passed with support from large oil companies, substituted producer agreements for normal market competition. The oil industry was the first to adopt a "fair trade" code under the Act. When the Supreme Court ruled NIRA unconstitutional in 1934, the majors once again turned their attention to Washington. They favored federal regulation to limit supply, but when some in the Roosevelt administration argued for public-utility style regulation of major oil companies (which would involve limits on rates of return), oil company support shifted to the Connally Hot Oil Act of 1935, which gave federal sanction to the state prorationing (supply restriction) programs that restricted competition and raised prices. After an intense lobbying effort, Congress adopted a clause in the Reciprocal Trade Act Amendments of 1955 that authorized the president to limit imports of a commodity if he thought such imports were detrimental to national security. In 1959, President Dwight Eisenhower invoked the clause and imposed oil import quotas. This effort to restrict imports drove down international oil prices and encouraged the creation of the Organization of Petroleum Exporting Countries. International oil companies, which were now effectively shut out of the U.S. market, flooded Europe with cheap oil and increased its oil dependence. The world price of oil declined until the mid-1970s. With lower prices, oil companies reduced their royalty payments to Middle East countries, which prompted those nations to create OPEC. In the United States, the effects of a tighter world oil market were aggravated by President Richard Nixon's price controls, which gave special attention to oil because oil prices were rising rapidly. The Nixon price controls, which began in August 1971, were complex and they went through a series of phases over time. The controls interacted with changing market conditions to create shortages of different products at different periods during the 1970s. For example, heating oil shortages arose during late-1972, but most other oil products were less affected at that particular time. Then in 1973, severe shortages of gasoline developed at independent retailers. Oil price controls collided with the rising cost of imports, forcing oil companies to cut back on imports. Those cuts in turn particularly hurt independent refiners and retailers, who obtained a large share of their supplies from the major importers. Thus, gasoline shortages were particularly acute at independent gas stations. Congress responded to this situation not with a repeal of the price controls that were the source of the problems, but rather with a series of new complex regulations. Congress passed the Emergency Petroleum Allocation Act in 1973, which enmeshed federal regulators even closer

into oil company operations, and it created a two-tier system of price controls on domestic oil. The price of "old"domestic oil was frozen, but "new" domestic oil was decontrolled. o The EPAA created many distortions, as one example will illustrate. Expensive imported oil was not subject to price controls and it determined the marginal cost, and thus price, of gasoline sold in the United States. But since many refiners had access to domestic old oil that was subject to price controls, they made larger profits than refiners dependent on new domestic oil. In response to this situation, the Federal Energy Administration created complex new rules in 1974 to spread around the refiner benefits of price-controlled old oil. Those rules, in turn, created incentives for refiners to further increase oil imports. o The EPAA helped to create the very shortages that it was supposed to ameliorate. By attempting to insulate the U.S. market from world oil prices, EPAA actually created incentives to hoard just at those times when inventories should have been released on the marketduring the disruptions of 1973 and 1979. In sum, a range of new government interventions in the 1970s exacerbated the conditions that they were supposed to resolve. o The EPAA regulations were scheduled to expire after two years, and Congress replaced them with new rules under the Energy Policy and Conservation Act of 1975. This law placed previously uncontrolled new oil produced since EPAA had passed under price controls, so we went from a two-tier price control system to a three-tier system. EPCA created and exacerbated a range of economic distortions, including increasing the incentives to import and decreasing consumer incentives to shift from oil to other energy sources or to conserve. o Price controls on oil and refined products were extended through 1979 with various further iterations. Finally, in 1979 President Jimmy Carter began to repeal price controls through a series of administrative actions. President Ronald Reagan finished the job in 1981. o Congress finally allowed oil price controls to expire, but decided to place a windfall profits tax on companies in 1980. The tax was not really a tax on profits, but an excise tax on domestic oil production and thus made domestic production less attractive, while encouraging imports. One congressional study found that the tax reduced domestic oil production by 3-6 percent and increased U.S. imports by 8-16 percent.3 The windfall profits tax was repealed in 1988. And the period since 1990 has been generally free of petroleum market regulation.4 o Source: http://www.downsizinggovernment.org/energy/regulations#sthash.s0m3R ozY.dpuf GEOGRAPHIC CHARACTERISTICS

3. The Client HISTORY The company is a direct descendant of John D. Rockefellers Standard Oil Previously known as Humble Oil or Standard Oil of New Jersey Replaced multiple oil brands on January 1, 1973 Beforehand, Humble Oil was a company established on the East Coast that would later expand to the West In 1963, Humble Oil wished to purchase the refining and marketing operations of Tidewater Oil Company, which would help them expand further and take the market in California, where the market was growing the fastest. However, The Supreme Court denied this request on the grounds of anti-trust laws. Humble Oil received many lawsuits and complaints from other companies, such as the Stand Oil of Kentucky, for expanding too much and taking too great a part of the market. In the 1960s, Humble Oil struggled to become a nationwide company distributing under one name, such as Shell and Texaco. Humble Oil was a main promoter and broadcast sponsor for college football.

 SIZE

At first, Humble Oil wanted to change its nationwide name to Enco, but dismissed that idea when they found it was similar to a Japanese word meaning stalled car. In 1972, Humble Oil became Exxon for a unified brand name. The name was initially going to be Exon, but the sitting governor of Nebraska had the last name Exon, so an x was added. In 1989, Exxon moved from downtown New York (Rockefeller Center) to Irving, Texas, because New York costs were too high. In 1989, a oil carrier traveling from Alaska to Long Beach hit a large reef and caused the second largest oil spill in American history. There have been a total of 6 oil spills caused by Exxon infrastructure. In 2012, CEO Rex Tillerson received salary of 34.9 million dollars, a twenty percent raise from the previous year (according to thinkprogress.org) CEOs are normally paid in stock advances, meaning that they either rise or fall with their investors. Made approximately 104 million dollars a day (according to thinkprogress.org)

In January of this year, Exxon took over Apple as the largest company. Around 80,000 employees Annual employee pay in 2011-66,605 (Bloomberg) 45,000 gas stations in 118 countries around the World Owns 36 oil refineries worldwide Has the ability with these refineries to produce 6.2 million barrels of oil a day Owns less than one percent of the worlds total oil and gas reserves 453 billion dollars in revenue, which is the third highest grossing company in the world REPUTATION ExxonMobil has a reputation of an older generation, conservative organization. The organization has been strongly against LGBT rights, and received the worst score by the Human Rights Campaign (-25, the only negative score) in terms of progressive LGBT ideals. The company does not give to charity. Ultimately, this is our shareholders money were spending, CEO Rex Tillerson said, according to the essay Steve Coll wrote for the Points section last month. Its not my money to tithe. Its not the corporations. Its our shareholders. (http://dallasmorningviewsblog.dallasnews.com/2012/07/exxonm obil-profits-above-all-else.html/) In 2007 ExxonMobil was rated the company with the worst reputation in almost every study due to the Valdez oil spill. Since then, philanthropic giving and public relations has bettered this reputation The company was charged with a lawsuit alleging they knowingly assisted human rights violations when it supplied material support to Indonesian military forces, who committed crimes of torture murder, and rape. The company dismissed these charges, which dismissal is still under appeal.

STRUCTURE ExxonMobil is structured by business activity on a global basis and not by country. The company is divided into 11 separate businesses: 5 Upstream (Exploration, Development, Research, Production, Gas Marketing), 4 Downstream (Refining and Supply, Fuels Marketing, Lubricants and Petroleum Specialties, Technology), Chemicals, and Coals and Minerals Major shareholders (as described in corporatewatch.org) Top Institutional Holders of Exxon Mobil: FMR Corporation (Fidelty Management & Research Corp) Barcleys Bank Plc Morgan (J.P.) Chase & Company State Street Corporation Mellon Bank, N.A. Vanguard Group, Inc. Putman Investment Management, Inc. Taunus Corporation TIAA Cref Investment Management, LLC Citigroup Inc. Top Mutual Fund Holders (as described in corporatewatch.org) College Retirement Equities Fund-Stock Account Fidelity Magellan Fund Inc Vanguard Index 500 Fund Fidelity Growth And Income Portfolio Putnam Fund For Growth And Income AXP New Dimensions Fund Fidelity Contrafund Inc Vanguard Institutional Index Fund Fidelity Puritan Fund Inc Washington Mutual Investors Fund Board of Directors Exxon Mobil: The board is made up of 15 directors- (corporatewatch.org) Lee R. Raymond Chairman of the Board of Directors and Chief Executive Officer Eugene A. Renna Senior Vice President Ren Dahan Senior Vice President Harry J. Longwell Senior Vice President Michael J. Boskin T.M. Friedman Professor of Economics and Senior Fellow, Hoover Institution, Stanford University William T. Esrey Chairman and Chief Executive Officer, Sprint Corporation (a global

communications company integrating long distance, local and wireless communications services and one of the worlds largest carriers of Internet traffic) Donald V. Fites Retired Chairman and Chief Executive Officer, Caterpillar Inc. (manufacturer of construction, mining, and agricultural machinery and engines) Charles A. Heimbold, Jr Chairman and Chief Executive Officer, Bristol-Myers Squibb Company (manufacturer of consumer products and pharmaceuticals) James R. Houghton Chairman of the Board Emeritus, Corning Incorporated (communications, advanced materials and display products) William R. Howell Chairman Emeritus, J.C. Penney Company, Inc. (department store and catalogue chain) Helene L. Kaplan Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (law firm) Reatha Clark King President and Executive Director, General Mills Foundation; Vice President, General Mills, Inc. (manufacturer and marketer of consumer food products) Philip E. Lippincott Chairman of the Board, Campbell Soup Company (global manufacturer and marketer of high quality, branded convenience food products); Retired Chairman and Chief Executive Officer, Scott Paper Company (sanitary paper, printing and publishing papers and forestry operations) Marilyn Carlson Nelson Chairman and Chief Executive Officer, Carlson Companies, Inc.; Co-Chair, Carlson Holdings, Inc. (travel, hotels, restaurants and marketing services) Walter V. Shipley Retired Chairman of the Board, The Chase Manhattan Corporation and The Chase Manhattan Bank (banking and finance) Executives Lee R. Raymond Chairman of the Board and Chief Executive Officer E. G. Galante Senior Vice President R. W. Tillerson Senior Vice President H. J. Longwell Executive Vice President, Director E. A. Renna Executive Vice President, Director R. Dahan Executive Vice President, Director M. E. Foster President, ExxonMobil Development Company F. A. Risch Vice President, Treasurer D. D. Humphreys Vice President, Controller C. W. Matthews Vice President, General Counsel T. P. Townsend Vice President of Investor Relations, Secretary P. E. Sullivan Vice President and General Tax Counsel H. R. Cramer Vice President

K. T. Koonce Vice President S. R. McGill Vice President S. D. Pryor Vice President D. S. Sanders Vice President J. S. Simon Vice President The two Senior Vice Presidents, the three Executive Vice Presidents and the Chairman and CEO, L. R. Raymond, constitute the Corporation's Management Committee. 4. The Issue SALES AND PROFIT HISTORY After a steep decline in 2009, sales have been steadily rising up to 2012, where they had a very small decline. Cost of Goods Sold has followed the same trend, and so has the gross income. http://www.marketwatch.com/investing/stock/xom/financials

According to Forbes, Exxon is currently #5 on the list of Worlds biggest companies. They are also #3 in Sales, #1 in profit, #91 in assets, and #2 in Market value Market Cap is at $400.42 B http://www.forbes.com/companies/exxon-mobil/

4. The Product, Service or Issue the gasoline: 3 octane grades, developed on molecular level for better fuel economy meets TOP TIER Standards (Top tier is the premier standard for gasoline performance according to http://www.toptiergas.com/index.html

The Octane rating is the measure of a gasolines ability to resist knock or ping during combustions. The higher rating menas greater reisistance. Exxon offters octane 87,89, and 91-93 Exxon also provides marine fuels and aviation fuels Breakdown of products offered: o 42%gas o 25%diesel o 9%aviation/jet fuel o 4%liquified petroleum gas o 4%fuel oil o 2%waxes/asphalt o 3%chemicals o 11%lubes/coke/other http://www.exxonmobil.com/Corporate/about_what_downstream.aspx

PRODUCT DEVELOPMENT continuous improvement is a key element of the process management so they can ensure great performance and have a competitive advantage. Researchers will make products that always meet or exceed industry standards and needs of customers. Extensive product testing done, bench, rig, engine, and field testing This is critical for making sure the product meets the claims and representations Once the product is out of the lab, it will undergo industry standard tests, propriety tests, and field test in order to verify performance. Field engineers will help to identify where any data and any conditions need to be monitored, and technologists are at hand to review the product http://www.exxonmobil.com/Lubes/technology_commitment_research.aspx REPUTATION even though Exxon was number 1 on 2011s fortune 500 list of most profitable companies(http://money.cnn.com/magazines/fortune/fortune500/2012/performers/ companies/profits/) , it was ranked 51 out of 60 on the 2012 Harris Poll Reputation Quotient http://www.prdaily.com/Main/Articles/10954.aspx In April 2013, a jury in New Hampshire found Exxon Mobil liable in the lawsuit over groundwater contamination by the gas additive, MTBE. The company was ordered to pay $236 million to clean it up. http://www.cbsnews.com/8301505123_162-57578675/exxon-mobil-must-pay-$236-million-in-u.s-pollutioncase/ An Exxon Mobil pipeline ruptured in Arkansas in April of 2013, and investigation proved that it was not the fault of the state http://www.cbsnews.com/8301201_162-57577491/arkansas-will-investigate-exxonmobil-oil-spill/ Based on these article and comments made, Exxon does not have a good reputation among environmental groups

In an interview with CBS about drilling, CEO Rex Tillerson said My philosophy is to make money. http://www.cbsnews.com/8301-505123_16257578675/exxon-mobil-must-pay-$236-million-in-u.s-pollution-case/ In 2013, Exxon beat out Apple as the worlds most valuable publicly traded company, meaning Exxon has a market capitalization a few billion dollars higher than Apples http://www.foxnews.com/tech/2013/04/17/apple-loses-title-worldmost-valuable-company-to-exxon/ Before the BP oil spill, the Valdez oil spill in 1989 was the largest oil spill in U.s coastal waters. And 23 years after it happened, they are still looking into the longterm effect on killer whales in Alaska. http://response.restoration.noaa.gov/exxonvaldez Exxon known for responding to Oil spill with increased safety, and now their reputation is that they are very safe. o Exxon, the world's largest publicly traded international oil and gas company, sticks to its standards, Tillerson says, even if it means tough decisions need to be made. "We do not proceed with operations if we cannot do so safely," he said. In 2006, Exxon halted drilling in an oil field in the Gulf of Mexico, dubbed Blackbeard, because it got too dangerous even though Exxon had spent $185 million and 575 days drilling. o From http://usatoday30.usatoday.com/money/industries/energy/2010-0803-oilspillrig_N.htm 2007- Exxon accused of spending money to mislead the public on the seriousness of global warming http://www.nytimes.com/2007/01/04/business/04exxon.html?_r=0 Exxon funded campaigns to raise doubts about global warming http://www.pbs.org/wgbh/pages/frontline/environment/climate-of-doubt/stevecoll-how-exxon-shaped-the-climate-debate/ 2009- Exxon named Green company of the year (http://www.forbes.com/forbes/2009/0824/energy-oil-exxonmobil-greencompany-of-year.html), however there were some skeptics as to whether or not this was an accurate label, like this article called Is ExxonMobil Really the Green Company of the Year? (http://www.huffingtonpost.com/james-hoggan/isexxonmobil-really-the_b_277070.html) April 2013- after the pipeline leaks in Alaska, Exxon is still pushing for the Keystone pipeline, but public opinion is not very keen on more drilling and oil pipelines(http://qz.com/69763/exxonmobil-pipelines-public-opinion-could-upendkeystone/) 2012- the Ad campaign that called for better science is called hypocritical because of its funding of those past campaigns claiming denial of scientific claims. This is also when the company started its math and science initiative under charitable giving. (http://thinkprogress.org/climate/2012/04/16/464922/what-you-shouldknow-about-exxon-mobils-hypocritical-science-education-ad-campaign/)

2010- Articles claim that Exxon is becoming very dangerous because it funds so many right-wing policy groups and foundations and think tanks (http://www.peoplesworld.org/why-exxon-mobil-is-more-dangerous-than-bp/)

5. Promotions LEADERSHIP Rex Tillerson- CEO since 2006 Salary in 2011: $25.2 million Predecessor: Lee R. Raymond 1993-2005 Acquired XTO in 2010 XTO is a Fortune 500 company Board of Directors: o Michael J. Boskin, since 1996. T.M. friedman Professor of Economics and Senior Fellow, Hoover Institution, Stanford University o Peter Brabeck-Letmathe, since 2010. Chairman of the Board of Nestle o Ursula M. Burns, since 2012. Chairman of the Board and Chief Executive Officer of Xerox Corporation o Larry R. Faulkner, since 2008. President Emeritus of University of Texas at Austin o Jay S. Fishman, since 2013. Chairman of the Board and Chief Executive officer, The Travelers Companies o Henrietta H. Fore, since 2012. Chairman and Chief Executive Officer, Holsman International o Kenneth C. Frazier, since 2009. Chairman of the Board, President, and Chief Executive Officer of Merck & Co. o William W. George, since 2005. Professor of management practice, Harvard University o Samual J. Palmisano, since 2006. Former chairman of the Board, IBM o Steven S. Reinemund, since 2007, Dean of Business, Wake Forest University o Rex Tillerson, since 2004. Chairman of the Board and Chief Executive Officer of Exxon Mobil Corporation o William C. Weldon, since 2013. Former Chairman of the board of Johnson and Johnson o Edward E. Whitacre, Jr., since 2008. Former Chairman of the Board, General Motors, Charmain Emeritus, AT&T Board Committees: o Audit, compensation, board affairs, finance, public issues and contributions, executive Compensation committee: purpose is to determine compensation for the CEO and other executives, and makes recommendation about succession planning and development for other senior executive positions. Members

o o o o o o

are appointed by the board, and are not able to participate in any of the compensation plans that they administer. They review corporate goals and objectives that are relevant to determining compensation of the CEO Meet annually to evaluate CEO performance compared with the goals and objectives. Annually review succession planning Make recommendations to the board about compensation planning and equity-based planning. Mr. Fishman, Mr. Palmisano, Mr. Weldon, Mr. Whitacre, Jr. http://www.exxonmobil.com/Corporate/investor_governance_comm_com pensation.aspx

EMPLOYEE COMPENSATION AND BENEFITS Programs in the US include: health, dental, vision plan options for employee and eligible dependents; savings plan; pension plan; disability coverage; life insurance; flexible work arrangements including personal time off, adjustable work schedules; telecommuting, and short-term part-time arrangements Education assistance- reimburses 100% of college related expenses for approved courses Matching gift program-matches your gifts to eligible colleges, with financial grants Volunteers involvement program- provides financial grants to eligible non-profit organizations you are involved with Financial fitness program-offers help so employees will understand exxons financial programs and have a better financial future Resource referral- helps employees with childcare, elder care, adoption, teen issues, stress, etc Employee product discounts Adoption assistance Emergency back-up dependent care programs Leaves of absences for personal, family, military, and educational Spousal relocation assistance Professional membership support Survivorship counseling Employment policies: Diversity policy: they strive to get and retain a diverse workforce, foster a productive environment, and keep an environment where individual and cultural differences are respected, valued. Identify and develop leadership capability that will allow them to excel in a global environment http://www.exxonmobil.com/USA-English/HR/careers_us_andyou_benefits.aspx CHARITABLE GIVING

ExxonMobil Foundation- philanthropic section, founded in 1955. President is Suzanne McCarron since 2010. Includes womens economic opportunity initiative, math and science initiative, and malaria initiative. Womens economic opportunity- focused on developing women entreprenuers and leaders through skill and development training, mentor programs, business women networks. create advocacy and research programs. Support of high-impact sustainable innovations and research to help accelerate womens academic advancement. o So far have invested $47 million and reached over ten thousand women in almost 100 countries o Partners: Africare, CEDPA, Cherie Blair Foundation for Women, Coady international Institute, Council on Foreign Relations Women and Foreign Policy Advisory Council, Harvard Kennedy School Women and Public Policy Program, Harvard Womens Leadership Board, international Center for Research on Women, Kopernik, Solar Electric Light Fund, Solar Sister, Thunderbird School of Global management, Vital Voices Math and Science Initiative o Exxon has given $125 million to support the National Math and Science Initiative, a non profit organization o This organization replicated math, science, technology, and engineering programs that have proven to be effective, and helped prepare students in 29 states o A critical component of this is providing good development for teachers, and for recruiting and preparing future teachers of math and science. Malaria Initiative- works with partners including local institutions and international NGOs in Africa to help stop the spread of malaria on the continent. o Since 2000, invested more than $110 million o Reached more than 83 million people in 17 countries o Helped distribute more than 13.1 million bed nets throughout Africa o More than 942,000 rapid diagnostic kits, and 1.8 million doses of antimalarial drugs. o Trained more than 250,000 health care workers and counselors o Helped fund three pediatric anti-malarial drugs o http://www.exxonmobil.com/Corporate/community_malaria_invest.aspx Worldwide giving o 2012- $40 million employee and retiree giving, $5 million arts and culture, $49 million civic and community, $4million environment, $25 million health, $49 million higher education, $8 million united appeals and workplace giving, $49 million pre-college education, $9 million public policy research, $18 million other education

o Total: $256 million

http://www.exxonmobil.com/Corporate/Imports/ccrcharts/img/charts/community_invest ments_focus.jpg

STAKEHOLDERS Governments- participate in 47 countries Shareholders-2.5 million individuals, more than 2,000 institutions Suppliers- 160,000 suppliers of goods and services Communities, NGOs and academic institutions- 542, interactive sessions, 58,000 individuals Customers- millions of consumers and industrial customers Employees- about 77,000 employees in 67 countries around the world FINANCIAL STATEMENTS Exxon https://www.google.com/finance?fstype=ii&q=NYSE:XOM

http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker =XOM

Summary of financial statements: Revenue and gross profit increased from 2009-2011, but decreased very slightly from 2001-2012. Operating expenses and operating income have followed the same trend. Net income, has continually increased rom 2009-2012. Rex Tillerson financial information: compensation for 2011 o salary: $2,387,000 o bonus: $4,368,000 **where is this money coming from??** o restricted stock awards: $17,890,875 o all other: $519,230 o change in pension value and nonqualified deferred compensation earnings: $9,755, 401 o total compensation: 34,920,506 o http://www.forbes.com/profile/rex-tillerson-1/ o April 2013- His compensation rises to $40.2 Million, http://online.wsj.com/article/SB1000142412788732374100457841861304 2749062.html

o o Exxon is number 14 on the list of 100 highest paid CEOs http://www.aflcio.org/Corporate-Watch/CEO-Pay-and-You/100-HighestPaid-CEOs FINANCIAL INFO OF COMPETING ORGANIZATIONS Exxonmobil leads the 6 major petroleum companies. (BP, Chevron Texaco, Total, ConocoPhilips, and Royal Dutch Shell) Chevron- CEO, John Watson, pay just increased 30% to $32.2 million http://www.mercurynews.com/ci_23005440/chevron-ceos-pay-jumps-30-percent32-2

Conoco- James Mulva, CEO total compensation is around #31.34 million http://www.forbes.com/lists/2006/12/CR0R.html BP chief executive, Bob Dudley, was paid 2.67Million in 2012 http://online.wsj.com/article/BT-CO-20130306-711651.html

PAST EXXON CAMPAIGNS In 2009, Exxon invested $600M in algae-based biofuel research. They joined the biotech company, Synthetic Genomics Inc to research and develop these biofuels that could be produced by sunlight, water, and waste carbon dioxide through photosynthetic bond scum. This also included a new test facility in San Diego to study algae growing and oil extraction. http://www.nytimes.com/gwire/2009/07/14/14greenwire-exxon-sinks-600m-intoalgae-based-biofuels-in-33562.html By May 2013, the had spent $100M and had not produced and real results. A spokesperson for the company said that they gained significant understanding ot eh challenges that must be overcome to deliver algae based biofuels. They withdrew from this project and said the next step would be to place more emphasis on basic sicence to understand and deve;o algae strains. http://www.bloomberg.com/news/2013-05-21/exxon-refocusing-algae-biofuelsprogram-after-100-million-spend.html Valdez Oil Spill: o 1989-Alaskas Prince William sound o 2250,000 barrels of oil o cleaned up with more than 11,000 Alaskan residents, and thousands of Exxon personnel o clean up was declared complete in 1992 o changes that were made after the oil spill: modified tanker routes; instituted drug and alcohol testing programs for safety sensitive positions; restricted safety-sensitive positions to employees with no history of substance abuse; implemented more extensive periodic assessment of ExxonMobil vessels and facilities; strengthens programs for vessel captains and pilots; and applied new technology to improve vessel navigation, and ensure the integrity of oil containment systems; improve response capability o http://www.exxonmobil.com/Corporate/about_issues_valdez.aspx o

6. Market Share

According to statistics released by Y charts, Exxon is considered a mega cap (over $200 B), which is a business value based on share price and number of shares outstanding. Exxons mega cap is 389.10 B. Fox News reports that Exxon just surpassed Apple as the worlds most valuable company, as of January 2013. Exxon' s shares gained 0.42 percent to 91.73 dollars per share for a market value of some 418.2 billion dollars, reports China.org.cn. According to Think Progress, Exxon is dominating the Big 5 Oil companies in quarterly profits. See graph below.

Despite falling gas prices, big oil still makes large profits and in 2012, the five companies combined made $62 billion last year. That means $341 million per day, according to numbers from Think Progress. CNN reports that Exxon reclaimed the number one spot on the Fortune 500 list in 2012. Exxon made $452,926 in revenues in 2012, coming in front of Chevron and Conoco Phillips by almost twice the revenue.

7. Competition (taxpayer.net)
Table 1: 2012 Oil and Gas Industry Profits (billions) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Company

2012 Total

ExxonMobil Shell Chevron BP ConocoPhillips Total Profits

Table 1: 2012 Oil and Gas Industry Profits (billions) 9.5 15.9 9.6 10.0 8.7 6.5 4.9 2.9 4.1 7.2 0.2 2.3 7.1 5.3 4.7 1.8 6.7 7.2 2.1 1.4

44.9 26.6 26.2 12.0 8.4 $118.1

Segmentation consists of Upstream (Exploration and Production), Downstream (Refining and Marketing, R&M), and Midstream (Transportation, Storage, and Trading). There is not a season or time when customers normally buy, business remains steady throughout the year. ExxonMobil is not the only company with oil spills and lawsuits in its past. Consumer attitudes are largely similar in terms of negativity across the oil company spectrum. Not many companies have launched any type of PR campaign or transparency/awareness campaign, expect for BP to change perceived attitudes regarding its oil spill in the Gulf of Mexico. Over the past few years, tightening environmental laws have been restricting production and limiting the amount of oil and gas production, raising prices and limiting revenues in all companies. In 2005, the average pay of a CEO in the oil industry (using the top 15 industries) was 32.7 million dollars (http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aJqpyE wim0Fw) Reports of large percent annual pay raises for CEOs from other competitors are also frequent, making the issue industry-wide.

Potential Publics: Shareholders Environmental groups Employees Competitors Governmental leaders

Congress Opinion leaders Drivers Bloggers Corporate donors Gas station owners Airlines Investors News organizations Economists Management Regulators Executive Branch Federal Administration Lobbyists United Steel Workers Union Other oil companies Natural gas companies The board of directors Best Potential Publics: Investors Shareholders Congress Management Board of Directors Lobbyists Employees Medium Publics: SEC Customers Environmental Leaders Executive Branch Federal Administration Competitors Natural Gas Companies Governmental Leaders Inefficient Publics: United Steel Workers Union News Organizations Economists Corporate Donors Bloggers Opinion Leaders

Public Profiles:

SHAREHOLDERS:
Background: ExxonMobils stockholders include more than 2.5 million individuals and more than 2,000 institutions. The Vanderguard Group, Inc., is the largest institutional holder with 222,138,704 shares. The CEO, Rex Tillerson holds the most shares at 1,934,322 shares. Shareholders participate in annual votes on policies and salaries. Demographics/Psychographics: Shareholders include 2.5 million individuals from many different areas and backgrounds. In addition to these adults, there are many groups and mutual fund shareholders. These include large corporations that have stake in Exxons success. These shareholders help make decisions for the companys future. They vote on corporate policies such as LGBT legislation, environmental regulations, and even CEO pay. Current Relationship: Because of Exxons large profits last year, shareholders are making a fairly good return on investment. For most shareholders, their shares are increasing in value annually. However, more and more shareholders are voting to decrease CEO pay. 70% this year approved of CEO pay, which is down from 78% last year and 90% the year before. Self-interests: Shareholders care about Exxons financial success because that determines the value of their company shares. They care about how the company does business because they want a good return rate. Channels: Good channels include email, website information, webcasts, surveys, information packets, brochures, conference calls, and annual shareholders meetings. Opinion Leaders: Shareholders will listen to the Board of Directors because they trust that source to give them information that will benefit their investment. Government leaders also influence shareholders with new policies and regulation.

CONGRESS
Background: Congress is made up of two chambers, the Senate and the House of Representatives. The Senate has 100 members, two from each state, while the House has 435 members, decided by proportional population. This year, the majority party in the House is Republican, with 233 Republicans, 200 Democrats and 2 vacancies, according to the government clerk. The Senate is mainly Democrat with 52 Democrats, 46 Republicans and 2 Independents. The Republican party tends to favor legislation that helps oil companies,

including tax breaks and subsidies. The Democratic Party tends to favor legislation that promotes higher taxes on big oil and seeks to subsidize alternative energy sources. Demographics/Pyschographics: Congress is made up of men and women from all of the 50 states. The average age in the Senate is 62.2, while the average age of members of the House is 56.7. There is a wide range of occupations within each chamber. Many members are high-income citizens, but the defining characteristic of members of both chambers is their political affiliation. Current Relationship: The House of Representatives supports legislation that benefits oil companies, while the Senate has proposed multiple tax break cuts for big oil. The Senate and the Executive Branch have both supported a cut of $4 billion in tax breaks to oil, gas, and coal companies in the 2014 budget. Self-interests: Each member of Congress has a slightly different self-interest, but party motivations are easier to capture. Plus, each member represents the interests of their state. Republicans tend to favor free market capitalism, and so support big oil with tax breaks and subsidies. Democrats tend to crack down on government subsides of big oil to promote alternative energy sources. Channels: The best channels for this public are lobbyists. Exxon Mobil has spent $17 million in lobbying over the last 18 months. Congress listens to lobbyists to decide what causes to take on and what proposed legislation to support.

EXXON MANAGEMENT
http://dailycaller.com/2013/05/29/nyt-oil-companies-paid-the-most-intaxes/ http://www.forbes.com/sites/jacquelynsmith/2012/04/04/americas-mostreputable-companies/ Background: Chairman and CEO Rex W. Tillerson, Senior Vice President Mark W. Albers, Senior Vice President Michael J. Dolan and Principal Financial Officer Andrew P. Swiger. These leaders are the highest paid employees of ExxonMobil. They all have considerable experience in the oil industry and expansive knowledge of the intricacies of the unstable oil market. Educational background. Current Relationship: CEO Tillerson recently received attention when it was announced his salary would be raised to over 40 million dollars. In the wake of recent heated political races, President Obama has made an effort to promote equality in the business sectors of America. Obama has proposed higher corporate taxes.

Opinion Leaders: Board of directors: The board of directors have power to make sweeping changes to the executive leadership of Exxon, when their actions are deemed harmful to the companies main goals. Shareholders: Shareholders also have some sway and influence in the decisions made by Exxons leaders. Distraught shareholders mean potentially less money streaming into the company. Employees: Exxons employees want to be guaranteed that decisions at the top arent trickling down and hurting their compensation or working environment. Self-Interests: Exxons executives assuredly enjoy receiving high compensation for their work. Exxons leadership also understand the importance of having satisfied employees. Employee turnover means less revenue and a potential reduction in quality and quantity. Channels: Leadership council meetings, conventions, through major I nvestors/ shareholders

LOBBYISTS
Background: According to opensecrets.org, Exxon spent almost 8 million dollars in lobbying fees in the year 2012. 24 out of the 37 lobbyists hired by Exxon have held previous jobs in the government. Have an unique understanding of the workings of congress. Have a high educational background. Majority of lobbyists either have experience in the government or practicing law. Current Relationship: Exxon has repeatedly been one of the top spenders on lobbying within American industries. Lobbyists are receiving continual work and receiving substantial pay for their services. Opinion Leaders: Colleagues, Congressional members, Exxon executives Self-Interests: Belief in the cause they are representing is ethical and worthwhile. Money is another self-interest for lobbyistsit is the main motivation for lobbying certain causes.

BOARD OF DIRECTORS
Background: Michael J. Boskin, since 1996. T.M. friedman Professor of Economics and Senior Fellow, Hoover Institution, Stanford University Peter Brabeck-Letmathe, since 2010. Chairman of the Board of Nestle

Ursula M. Burns, since 2012. Chairman of the Board and Chief Executive Officer of Xerox Corporation Larry R. Faulkner, since 2008. President Emeritus of University of Texas at Austin Jay S. Fishman, since 2013. Chairman of the Board and Chief Executive officer, The Travelers Companies Henrietta H. Fore, since 2012. Chairman and Chief Executive Officer, Holsman International Kenneth C. Frazier, since 2009. Chairman of the Board, President, and Chief Executive Officer of Merck & Co. William W. George, since 2005. Professor of management practice, Harvard University Samual J. Palmisano, since 2006. Former chairman of the Board, IBM Steven S. Reinemund, since 2007, Dean of Business, Wake Forest University Rex Tillerson, since 2004. Chairman of the Board and Chief Executive Officer of Exxon Mobil Corporation William C. Weldon, since 2013. Former Chairman of the board of Johnson and Johnson Edward E. Whitacre, Jr., since 2008. Former Chairman of the Board, General Motors, Charmain Emeritus, AT&T

Background: All information from http://www.exxonmobil.com/Corporate/investor_governance_boardpowers.aspx Amend by-laws Establish committees and committee members Elect officers, designate the CEO, appoint any assistant officers Establish corporation divisions, and appoint presidents to those divisions Remuneration of directors Must submit to shareholders any action that need approval from the shareholders Appoint independent auditors, audit committee. Which shareholders can ratify and receive reports for Declare dividends Issue and acquire long-term debt or shares of stock Review financial and operating results each quarter Adopt any new employee benefit plans and programs, approve of any major amendment of existing plans and programs Review of policies and any objectives for corporate contributions Approve of corporations budget each year The CEO must refer to the board for: o long term strategy and corporate plans

significant investment plans significant sales or transfers significant changes in policies significant organization changes review of political contributions made by the corporation interested in US and Canada o any matters related to the business which would be significant enough to need the Boards consideration o o o o o Demographics: Ages: 54-71 years old, 11 of the 13 are male, 11 of the 13 are Caucasian, Upper class, High levels of education, They all have had extensive experience in high leadership positions of large companies. Most have been a director, CEO, or president of some company. In 2011, they directors were compensated between $285,000 and close to $300,000 for being on the board. According to this article http://www.theracetothebottom.org/executive-comp/2012/6/12/thedirector-compensation-project-exxon-mobil-corporation.html Psychographics: Self-interests: Because Rex Tillerson is on the Board of Directors; they are the faces of the company and want to have a good reputation. They want to keep their shareholders happy. They want their employees to be loyal. They want their customers to be loyal. They want to have positive relationships with the media. But they still want to be rich. Opinion Leaders: Congress and government policy makers, oil industry leaders, CEOs and other boards of directors, shareholders. Channels: The Chairman of the board who sets the agenda for each board meeting (Held eight times per year). Employee supervisors who hear the reports from their employees, and then report to management could be used as a good channel. http://www.exxonmobil.com/Corporate/files/corporate/sbc.pdf Normally, an employee should discuss such matters with the employees immediate supervisor. Each supervisor is expected to be available to subordinates for that purpose. If an employee is dissatisfied following review with the employees immediate supervisor, that employee is encouraged to request further reviews, in the presence of the supervisor or otherwise. Reviews should continue to the level of management appropriate to resolve the issue. News Media is another great channel for this public. Current Relationship: Influential in determining policies and protocols of Exxon. The compensation committee also determines the compensation of the CEO, which is the main issue that this campaign is dealing with. They are

involved in any major policy changes, which if ultimately they want to change compensation, or decide to put money into different areas of the company (i.e. charitable giving) any of these changes would have to be approved by the board. The Board also has the CEO of the client on it, so he is both the face of the client, and currently the main problem for the negative attitudes towards the client. The rest of the board also have a stigma that they are earning too much money, which the campaign needs to address

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Background: The SEC is a government agency that investigates and regulates financial securities for individuals and organizations. This commission could be a key public to communicate with because a good, transparent relationship would help establish good financial reports and give substantial reasoning behind the pay of the Chief Executive Officer. Self-Interests: To make transparent the financial dealings of notable individuals and organizations, regulate stock trade and prosecute any person or company engaging in incriminating financial practices. The Commission is comprised of five members appointed by the President with consent from Congress, with no more than three allowed to pertain to the same political party in order to maintain balance. A term in the Commission lasts for five years, and the President appoints one as Chairman. Therefore, political opinions are widespread and bipartisan as a group. The Commission stands for firm legal financial decisions, and will investigate and publicize any misdemeanor or unethical action to the public (investors). Opinion Leaders: The SEC is one of many security commissions in the International Organization of Securities Commissions (IOSCO). Other than that, the public has no real infuentials because its organization is so that it is completely independent and unbiased. The President does not even hold the power to fire members of the commission. Channels: The main channel with which to communicate with the SEC is not only the periodic financial reports, but the narrative account management must provide them describing the year of operations and explaining financial decisions and future ventures. This is called the "Management Discussion and Analysis". By using this and similar documents to communicate primary and secondary messages, the SEC could potentially bring awareness to stakeholders and other publics as to why certain financial decisions were made, and validate the salary of the CEO.

Current Relationship: Exxon's relationship with the SEC is one of constant requests and disapproval. Recently, Exxon asked the SEC to disregard resolutions made by Chippewa tribes that would force the company to curb the negative environmental effects it was having in their areas. The SEC denied this request. Also, with new technology being developed by Exxon known as "fracking", shareholders wanted a financial report created that would expose the cost benefits of the procedure and if it would be worthwhile. Exxon asked the SEC to disregard these requests, but the SEC took the shareholders' side. Exxon should be seen by the SEC as a company wishing to promote the better good and make sound, financial decisions in order for the agency to become more willing to help overcome the core problem.

ENVIRONMENTAL GROUPS
Background: There are a few environmental groups that have successfully targeted Exxon and the issue at hand. One of these groups, Exxon Hates Your Children, uses the specific message that the company is having an effect on global warming, but will not do anything about it because of executive greed. Other groups like Greenpeace, the Defenders of Wildlife, and MoveOn.org have worked both separately and as an alliance in order to urge publics to boycott Exxon. Although their main self-interests are purely environmental, they broadcast specific messages portraying Exxon management as greedy and irresponsible. Self-Interests: Non-profits that almost always have the same interest as Greenpeace: To expose global environmental problems and to promote solutions that are essential to a green and peaceful future (greenpeace.org). Their goal is to solve environmental issues and to stir public debate and discussion about what is hurting the environment and how to stop it. Many environmental organizations send messages to their publics that Exxon is destroying the climate at the taxpayers expense. Many call for Congress and President Obama to stop all subsidies and tax breaks to fossil fuels. They often single out CEO Rex Tillerson and take quotes wildly out of context to paint him as a greedy businessman with no care for his environmental footprint. Most environmental organizations at odds with Exxon believe that the company is not burning oil in the most efficient manner, and is therefore causing harm to the planet. Opinion Leaders Channels: Key channels that would be effective in communicating with environmental organizations would be press releases, press conferences, and events that would serve their self-interests (tree-planting, environmental

awareness campaigns, etc.). Many of these organizations do not discuss what Exxon IS doing to help the environment, such as being the frontrunner for fracking. Even though the program still has not proven to be cost-effective, it paves the way for a cleaner way to extract oil. Current Relationship: The many oil spills caused by Exxon have shattered relationships with environmental organizations. Exxon has been widely criticized for its slow response in these situations, as well as a lack in community outreach. Instead of using funds to fight global warming problems where oil extraction takes place, Exxon has funded front groups that release information discrediting global warming and its effects. This has caused many problems, such as Greenpeace publishing the website Exxonsecrets.org: How ExxonMobil funds the climate change skeptics (exxonsecrets.org). Many organizations describe greed as a core principle of Exxon to drive their points to the hearts of their publics and create controversy. Situation Analysis: In recent years a downturn in the economy has affected unemployment and average salaries, resulting in negative perceptions of executive management paychecks. In the face of economic downturn, the oil industry has been resilient and continued to make large quarterly profits and make a high return on investment for shareholders. After events such as the Occupy Wall Street Movement in 2011, public perception has decreased to an all-time low concerning the pay gap between management and average employee salary ratio. In 2013, top US executives made an average of 394 times more than the average employee, which is up 1,000 percent from 1950. After Exxons CEO Rex Tillerson received a 15 percent pay increase in 2013, only 70 percent of shareholders voted in favor of CEO compensation as opposed to 78 percent last year and 91 percent the year before. The average Exxon worker made about $66,605 in 2011, whereas Tillerson made a total of $39.4 million, 524 times more than the average employee. This causes a concern for the reputation of Exxon and its perception of greed at the top executive level. Throughout the campaign, we expect potential barriers to arise. Because of the economic situation in the US, any exuberant salary will look greedy to the average American, even if Exxons CEO might be paid a fair percentage of overall profits. With unemployment at 7.3 percent, attitudes towards highly paid executives will be hard to overcome. Another barrier is high gas prices. Anytime gas is expensive, the public could potentially overlook any philanthropy from the company and associate management of big oil with greed. Core Problem/Opportunity: