Increase; we remain open-minded with respect to value-based fee structures and are interested in exploring all types of fee
arrangements that provide value to the company and to firms. In addition, we often have opportunities to work with new firms
and new talent, beyond the strong number of core firms on our slate of service providers. One of the factors that hinder more
widespread use of value-based billing is that law firms and clients continue to measure the success of the fee arrangement based
on hours and hourly rates.
As noted, we use fixed/flat fees on different types of matters and for different pieces of work. Examples include litigation and
transactional matters. We also utilize effective fixed fee agreements in the context of pre-litigation environmental disputes.
§;Flat fees for environmental litigation matters – The law department has arrangements with firms who handle on a
flat fee basis certain types of environmental litigation matters (including pre-trial, trial and appellate work) within a
defined geographic region.
§;Flat fees for transactional matters – Firms handle defined transactional projects on a flat fee basis.
§;Fixed fees for pre-litigation environmental matters – The law department has arrangements with firms who handle
on a flat-fee basis pre-litigation environmental matters (e.g., claims and/or access matters) within a designated
geographic area; an amount is set for the year, and payments are made monthly. On a periodic basis, the law firm and
law department meet to review the arrangement to ensure that the respective exceptions of the Company and firm are
OTHER VALUE PRACTICES IMPLEMENTED BY THE LAW DEPARTMENT
§;Annual Law Firm Review Meetings. We are actively focused on evaluating outside counsels’ performance across
various domains, including: results, quality, responsiveness, efficiency, diversity, and compliance with ExxonMobil
guidelines. This process entails annual meetings with key law firm relationship partners to discuss overall
performance and results as tracked by the law department.
§;Diversity and Talent Development. These are important attributes in terms of ExxonMobil’s relationship with its
outside counsel. We remain focused on exploring ways to expand diversity and reflect broad perspectives on the legal
teams representing ExxonMobil across the country and around the globe. Our commitment to diversity also includes
ensuring that diverse team members play a meaningful role in the assigned project.
§;Budgeting and Data Analysis. The law department regularly analyzes cost structures and financial information to
refine budgets and forecasts. Areas of particular focus include sound use of templates and scope assumptions. This
information is centrally stored and accessed for future use as well.
§;Centralized Ediscovery. For several years now, we have been building a robust, centralized ediscovery process that is
handled primarily in-house. The centralized team of 15-20 professionals works closely with our global Information
Technology organization, and focuses on efficient and coordinated processes designed to meet legal requirements and
§;Vendor Management. We coordinate the activities of litigation support and ediscovery vendors, working in
collaboration with outside counsel. We regularly review these relationships, and perform periodic security and
controls examinations to address potential gaps. We further seek to ensure that we receive cost competitive pricing
from third party vendors.
ESTIMATED COST SAVINGS
The foregoing efforts have saved the company millions of dollars while enabling the law department and its outside counsel
teams to deliver the highest quality legal services. In addition, these improved processes have contributed to better decision-making, stronger alignment with the business, and increased productivity with respect to legal services.
MOST VALUABLE PRACTICES; PROVIDED GREATEST RESULTS
The most valuable practices are those that enable us — inside and outside counsel together — to efficiently deliver the greatest
results for our clients. Keys to success: managing law firm performance, use of effective fee terms, commitment to diversity, and
sound management overall.