ExxonMobil to sever ties with incoming Secretary of State Tillerson

The agreement was made in order to avoid a potential conflict of interest, with Tillerson's two million deferred shares in Exxon being transferred to an independent trust to manage.

The shares have a value of $182m at the company's current market value. Tillerson also agreed to sell the 600,000 Exxon shares he currently owns, the company confirmed.

In a statement released by ExxonMobil on Wednesday, it said that the total value of compensation of Tillerson's that will be reduced is $7m.

Tillerson retired from Exxon after working for the company for more than four decades, but is expected to receive stern scrutiny from the Senate before he is confirmed for the top job of Secretary of State.

Many commentators have criticised Trump's choice of Tillerson, among others, as it appears to contradict his campaign promise of "draining the swamp" of Wall Street interest from Washington.

The former oil boss has also been in the spotlight for his warm relationship with Russian president Vladimir Putin through business connections.

Trump himself has also been accused of cosying up to Putin during his election campaign, as well as after US intelligence officials concluded that Russia had attempted to influence the result of the presidential election.