Lashier named CEO as Garland ends decade at top
As Phillips 66 forges into its second decade, standing at the precipice of big opportunities as well as big changes, it will do so with a new leader.
The company announced Tuesday that current President and Chief Operating Officer Mark Lashier will become President and Chief Executive Officer on July 1, while Greg Garland will remain as Executive Chairman of the company’s Board of Directors. The news comes just shy of the 10-year anniversary of Phillips 66’s debut on the New York Stock Exchange as an independent company.
“Today’s announcement is a culmination of a thoughtful, thorough and purposeful succession-planning process undertaken by our Board of Directors,” Garland said in an email to employees. “The timing makes sense, given our move into the energy transition. We have accomplished great things over the past 10 years and now we need to tackle the opportunities and challenges that lie ahead. Mark is the right person for the job.”
Lashier, who has more than 30 years of industry experience, is a trusted leader with a proven track record of delivering solid business results and safety and operational excellence. His four-year tenure at the helm of Chevron Phillips Chemical, the petrochemical giant in which Phillips 66 owns a 50% stake, is marked by both ambitious expansion projects and his steady hand through the tumult of the COVID-19 pandemic.
A chemical engineer who holds 13 patents in the U.S., Lashier is committed to innovation.
“Greg’s leadership in fostering a culture of operating excellence and financial strength will benefit us for decades,” Lashier said. “That foundation is critical as we face the opportunities and challenges of the next 10 years.
“We intend to take on the energy transition, and we intend to win. And to do that, we need to tap into the full potential of every employee so that we’re more competitive. I fully believe we will do that, and we will do great things together.”
Garland said that in his role as Executive Chairman, he will focus on ensuring the board has the right mix of talent and experience to govern Phillips 66 as it continues to evolve.
“We need to make sure we set our board up to be very successful in the future and to be able to address the challenges and opportunities we see in the future,” said Garland, who will serve as Executive Chairman until he retires in 2024.
Since Garland assumed the CEO role in May 2012, Phillips 66 has recorded many notable achievements. The company has:
- become an industry leader in operating excellence, including safety, reliability and environmental stewardship;
- pioneered disciplined capital allocation in the energy business, targeting 60% of cash flow back in the business while returning 40% to shareholders;
- returned $29 billion to shareholders through dividends, share repurchases and exchanges;
- raised its dividend 10 times for a compound annual growth rate of 17%;
- grown its Midstream business, establishing leading positions in the crude and NGL value chains;
- established a values-based organization that is true to its vision of providing energy and improving lives.
It’s that last bullet that Garland said means the most to him as he closes this chapter in a career that started with Phillips Petroleum in 1980.
“From the very beginning, I tried to lead with my personal values of faith and family and community and work,” Garland said when he sat down with Corporate Communications to discuss the transition. “When I think about what we've accomplished and the culture that we've been able to stand up with the company, that's what I'm most proud of.”
And, as always, he saved his highest praise and gratitude for the people of Phillips 66, a sentiment he echoed in his email.
“During the last decade as CEO, I have been fortunate enough to do what I love, and to work with the smartest and most talented people I’ve known,” he said. “Thank you for the privilege of being your CEO. I am beyond grateful.”
Shown at top, from left: Greg Garland and Mark Lashier