Exxon Mobil Corp. has chosen an outsider to lead its financial strategy as the energy giant responds to increasing investor demands for a transition away from fossil fuels.
Effective August 9, Kathryn Mikells will take on the role of chief financial officer. Mikells brings a wealth of experience, having previously served as CFO at several major companies, including Xerox Holdings Corp., ADT Inc., and United Airlines Holdings Inc. Most recently, she held the CFO position at British spirits company Diageo PLC from November 2015 to June 2021 before returning to the U.S. to be closer to family.
Mikells succeeds Andrew Swiger, who has been with Exxon since 2013 and plans to retire on September 1. Swiger, a 43-year veteran of the company, began his career as an operations engineer and held various positions throughout his tenure. At 64, he is approaching Exxon’s mandatory retirement age of 65.
The decision to bring in an external candidate like Mikells is unusual for Exxon, which has a history of promoting from within, particularly for senior management roles. This move reflects the company’s efforts to diversify its leadership perspective amid mounting pressure from investors for more aggressive steps toward sustainability.
In the past year, Exxon has faced significant challenges, highlighted by the defeat of three board nominees at its annual shareholder meeting in May. The activist hedge fund Engine No. 1, which owns just 0.02% of Exxon’s stock, successfully appointed three directors, emphasizing the need for external insights to navigate the ongoing transition to lower-carbon energy.
Engine No. 1 has criticized Exxon’s insular corporate culture and questioned its financial planning and capital allocation strategies, suggesting that poor investments have compromised the company’s balance sheet over the last decade.
At Diageo, Mikells was instrumental in cost reduction and portfolio reshaping, including the acquisitions of Casamigos tequila and Aviation American Gin, along with investments in its Chinese and African markets. She implemented predictive analytics tools to forecast customer demand and commodity prices and utilized zero-based budgeting to drive financial discipline.
As Exxon embarks on this new chapter with Mikells at the helm, the company aims to align its financial strategies with the evolving energy landscape.
