EXXON MOBIL CORPORATION
Mr. S. Jack Balagia, Jr.
Vice President and General Counsel
“Among the characteristics we value in our outside counsel is the ability to partner with in-house counsel, and in some instances with other outside counsel, to work cooperatively in achieving the
best results for the clients.”
“We expect our lawyers to be active and engaged in their respective law
communities, to be reflective of those communities, and to adhere to
the highest ethical standards.”
EXXON MOBIL CORPORATION LAW DEPARTMENT
The Law Department includes over 460 in-house lawyers who support the company’s
vast operations, involving over 80,000 employees across the globe.
OUTSIDE COUNSEL SPEND
Like other multi-national companies with sophisticated operations, ExxonMobil expends substantial resources on
legal services to support worldwide operations.
PERCENTAGE OUTSIDE COUNSEL SPEND CURRENTLY ON A VALUE BASIS
ExxonMobil’s law department is consistently mindful of obtaining superior results and excellent value for the
resources spent, focusing on both quality and efficiency of law firms and vendors.
The law department spends a significant portion of its outside counsel budget on legal services under fee terms
that are value-based, as opposed to hourly rate. Examples include fixed fees or flat fees for various types of work
regarding litigation and transactional matters. We find that these value-based fee structures are most effective when
the nature of the underlying work is somewhat predictable in terms of volume and repetitive in terms of scope.
We are constantly evaluating alternative approaches including flat fees, value-based fee structures and opportunities
to package work to achieve economies of scale. At the same time, we continue to vigorously manage hourly rates
with tiered volume discounts where it makes sense to do so.