Tillerson's exit won't affect the deal he struck with Exxon

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Tillerson's exit won't affect the deal he struck with Exxon
Secretary of State Rex Tillerson speaks at a news conference at the State Department in Washington, Tuesday, March 13, 2018. President Donald Trump fired Tillerson and said he would nominate CIA Director Mike Pompeo to replace him, in a major staff reshuffle just as Trump dives into high-stakes talks with North Korea. (AP Photo/Andrew Harnik)

WASHINGTON (AP) — Rex Tillerson spent just over a year as America’s chief diplomat. But he’ll continue to benefit from an arrangement he crafted with his former employer, energy giant Exxon Mobil, that could generate millions of dollars in tax savings.

Tillerson was Exxon’s chief executive officer when President Donald Trump selected him to be his secretary of state. Tillerson worked out a million retirement package with the company that also met the U.S. government’s conflict of interest requirements.

A key part of the package is a cash trust set up by Exxon through the sale of more than 2 million Exxon Mobil shares. Tillerson could save millions of dollars through the trust.

A senior fellow at the Urban-Brookings Tax Policy Center, Steve Rosenthal, calls the trust a “sweetheart deal.”