FTC bans former Pioneer CEO from Exxon board seat in Exxon-Pioneer deal

The Federal Trade Commission took action to resolve antitrust concerns surrounding Exxon Mobil Corporation’s (XOM) $64.5B acquisition of oil producer Pioneer Natural Resources (PXD) by approving a consent order that prevents founder and former Pioneer CEO Scott Sheffield from gaining a seat on Exxon’s board of directors or serving in an advisory capacity at Exxon once it acquires Pioneer. The proposed consent order seeks to prevent Pioneer’s Sheffield from engaging in collusive activity that would potentially raise crude oil prices, leading American consumers and businesses to pay higher prices for gasoline, diesel fuel, heating oil and jet fuel. The FTC alleges in a complaint that Sheffield has, through public statements and private communications, attempted to collude with the representatives of the Organization of Petroleum Exporting Countries and a related cartel of other oil-producing countries known as OPEC+ to reduce output of oil and gas, which would result in Americans paying higher prices at the pump, to inflate profits for his company. “Mr. Sheffield’s past conduct makes it crystal clear that he should be nowhere near Exxon’s boardroom. American consumers shouldn’t pay unfair prices at the pump simply to pad a corporate executive’s pocketbook,” said Kyle Mach, Deputy Director of the FTC’s Bureau of Competition. “The FTC will remain vigilant in its enforcement efforts to protect competition in these vital markets.” The FTC’s proposed consent order would prohibit Exxon from nominating, designating, or appointing Sheffield to the Exxon board or from serving in an advisory capacity in any way to the Exxon board or Exxon’s management.