EXXON CHAIRMAN GETS $400 MILLION RETIREMENT PACKAGE AMID SOARING GAS PRICES

ABC News via Drudge ^

[aShepard]

April 14, 2006— Soaring gas prices are squeezing most Americans at the pump, but at least one man isn't complaining.

Last year, Exxon made the biggest profit of any company ever, $36 billion, and its retiring chairman appears to be reaping the benefits.

Exxon is giving Lee Raymond one of the most generous retirement packages in history, nearly $400 million, including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes.

Last November, when he was still chairman of Exxon, Raymond told Congress that gas prices were high because of global supply and demand.

"We're all in this together, everywhere in the world," he testified.

Raymond, however, was confronted with caustic complaints about his compensation.

"In 2004, Mr. Raymond, your bonus was over $3.6 million," Sen. Barbara Boxer said.

That was before new corporate documents filed with the Securities and Exchange Commission that revealed Raymond's retirement deal and his $51.1 million paycheck in 2005. That's equivalent to $141,000 a day, nearly $6,000 an hour. It's almost more than five times what the CEO of Chevron made.

"I think it will spark a lot of outrage," said Sarah Anderson, a fellow in the global economy program at the Institute for Policy Studies, an independent think tank. "Clearly much of his high-level pay is due to the high price of gas."

Exxon defends Raymond's compensation, pointing out that during the 12 years he ran the company, Exxon became the largest oil company in the world and that the stock price went up 500 percent.

A company spokesman said the compensation package reflected "a very long and distinguished career."

Some Exxon shareholders are now trying to pass resolutions criticizing the company's executive pay policies. The company is urging other shareholders to vote against those resolutions.

[PeteB570]

Me and you were on the same thought line.

$400m per each driver out there ain't much.

[xrp]

He should get 2x that amount just for the way he was sneering at the Senate committee when the oil company CEOs were summoned to testify. His disgust of government was obvious and classic.

[cccp_hater]

"How 'bout when thousands of them lost their jobs in 1986?"

There is a difference between losing a job and losing money. Were they given severence packages? Or were they thrown to the streets with nary a shirt on their backs?
And how many thousand executives did Exxon fire in 1986?

[stockstrader]

Hey, I have an idea!

Let's have the government come up with some new form of 'windfall profits' tax on the oil companies--something like Dick Durban just proposed. With a new incentive like that, we KNOW that the likely result will be more drilling, more oil and therefore, MORE and CHEAPER gas!

We all know that higher taxes ALWAYS work when it comes to providing incentives for increased production! (sarcasm-off)

[Almondjoy]

Amazaing.. I didn't know they were in the 90% tax bracket.

[HawaiianGecko]

Let's see, lets SWAG an estimated 100 million cars on the road. That's $4 per car, right?

Is that $4 for every cruise ship and jet also?

Your SWAG is giving me heartburn. Your assumption right of the bat assumes that all Exxon revenue comes from gasoline sales and only to Americans. They fuel airports, seaports around the globe. The largest mark-up items are probably those Little Hostess Donut Gems you buy every morning.

Most industries have income greater than 9% of sales. If these guys were setting prices, they'd be setting those prices to garner a 20% profit, not a measly 9%.

Microsoft had income of 30.8% of revenues in 2005: visit http://www.microsoft.com/msft/download/FinancialHistoryQ.xls $39.788B in sales and $12.254B in profit. Exxon had 3 times the profit but 10 times the sales... Gee what pigs these Exxon rats are huh?

Visit http://exxonmobil.com/corporate/files/corporate/sar_2005.pdf and read what all this corporation does to make your life enjoyable. I'm quite sure your pension plan is reaping a nice capital gain and dividends that they will plough back into your account as you whine.

 

[aShepard]

..."The 400 million dollar man.".....

"Anna Nicole Smith, paging Anna Nicole,"
please pick up the red courtsey phone"

[stockstrader]

I noticed you still haven't responded to my comments about ADDITIONAL competition (not only the competition from US companies) coming from foreign companies in the US??

Why are you ignoring the competition coming from CITGO--which happpens to be a wholly-owned subsidary of a VENEZUELAN oil company?

Why are you ignoring the competition coming from BP (British Petroleum--a big competitor or XOM with growing numbers of service stations everywhere),or

Why are you ignoring the NEW COMPETITION on the block (LUKOIL--a Russian company that is growing and expanding like crazy. They are already all over New York and adding stations almost daily--especially on the East Coast)?

[ConTex]

Facts?!!?!??!

[the invisib1e hand]

Pathetic.

I was just asking myself, "where are the conservatives on this forum" when I read your post.

In the same way that sinners make great converts, so converted dems make great conservatives.

[M. Espinola]

I believe in light of rising pump prices this publicized retirement package is excessive, but those in either oil stocks or energy related contacts, it's been an incredible bullish couple of years. The next bullish run is just getting underway.

Light Crude Oil (NYMEX)chart

[OKIEDOC]

As a long time supporter of the oil industry this certainly makes my attitude change.


No man or woman is worth 400,000,000 million dollars not even perky Katie Couric.

[cweese]

OK, I guess I misunderstood your point. I see losing a job AS losing money, regardless if a severance package is offered. As for the # of Exxon execs. losing their jobs in 1986? Well, they terminated 45k or more employees between 1986-1988, so maybe a couple thousand.

[HawaiianGecko]

Something has changed, and I think somebody should be investigating just what that is.

Yeah, and I can remember when bread and milk were delivered to my doorstep by different drivers. I also remember my doctor making house calls. 

The reason four guys no longer come out to fill your tank, wash your windows, check your tires and check you oil is become some other guy they were competing against decided he could sell gas cheaper if you did all that yourself instead of him making a payroll, unemployment payments, liability insurance, worker's compensation and 7.65% employer side FICA and Medicare expenses.

The competition you are screaming about is exactly what did happen.

 

[kjo]

Look, I'm not pretending to know much here. I was lucky to get through two econ courses in college.

I JUST WANT TO KNOW WHY EXXON DOESN'T COMPETE FOR MY BUSINESS AGAINST SHELL?

Please, just tell me that. I'm not trying to be a jerk, I just want somebody to answer my question.

Why don't those guys in uniforms jump out of the station garage and clean windows, fill tires, and SELL gas anymore? I can remember my parents going to a Marathon over a Shell because Marathon was giving out free glassware with a fillup.

What has happened to all that?

JUST ANSWER ME THAT!

[dennisw]

Lee Raymond: CEO of Exxon for the past 12 years

[Rummyfan]

Good for him! He didn't take any money out of my pocket!

[stockstrader]

That's an easy one. THEY DO. Who in the heck do you think owns Shell? Look it up....lol

[cweese]

"No man or woman is worth 400,000,000 million dollars not even perky Katie Couric."

Man, you must REALLY hate Bill Gates ($46.5B net worth) and personal computers! What are you typing on, a log?

[kjo]

Not buying your explanation. Too much has changed. How come stations across the street from one another are no more than a penny apart? Yet you go to the other side of town and the price is a nickle less, with two stations there, a penny apart.

It doesn't add up.