On August 31, Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM) was removed from the Dow Jones Industrial Average (DJIA), signifying the end of an era for the oil giant which has been in the index since 1928

The DJIA index contains 30 companies that provide a broad representation of the market, with the exception of the transportation and utility industries.

There are only a few simple guidelines for the entry and removal of companies from the DJIA.

The report by S&P Dow Jones Indices states, “a [US] stock typically is added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors.”

In this context, ExxonMobil’s departure from DJIA tells a tragic story of how this vaunted company has fallen from grace.

Year to date, ExxonMobil’s share price has plunged by more than half, from US$70.29 to US$34.74 on 9 October 2020.