Posted on 04/14/2006 1:20:10 PM PDT by 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.
Are you a Marxist? Why do you hate America?
(I'm kidding)
I was not clear in my point. The energy prices are only going to get worse, and they will cause layoffs because they are putting strains on industry across the board. I am not suggesting that the price someone pays to fill up their SUV is going to make them riot. But when they lose their jobs because their companies cut back production they will be angry. Gasoline is required to run Cateppilars, cranes, and chemical plants. Gasoline is also required for people to ship their products. High energy prices will slow the economy down, period. The economy is good now, but these prices will eventually take their toll. This obviously isn't the result of simply the oil companies. OPEC shares some blame, and of course we do as well for being so dependent on oil. I think Bush is on the right track with his energy policy because we will be in big trouble if we don't find cheaper energy sources. I realize this is off the original topic, but I've made my point about the oil companies.
LOL
Of course not.
Part of what you're talking about is inflation. Yeah, bread is going to cost more at the supermarket because it's going to cost more to get it to the supermarket, etc.
I can see the fuel prices sending us into a recession.
For 13 years ... [u]nder Raymond, the company's market value increased fourfold to $375 billion, overtaking BP as the largest oil company and General Electric as the largest American corporation. Net income soared from $4.8 billion in 1992 to last year's record-setting $36.13 billion.
Shareholders benefited handsomely on Raymond's watch. The price of Exxon's shares rose an average of 13 percent a year. The company, now known as Exxon Mobil, paid $67 billion in total dividends.
For his efforts, Raymond, who retired in December, was compensated more than $686 million from 1993 to 2005, according to an analysis done for the New York Times by Brian Foley, an independent compensation consultant. ...
Shareholder advocates point to what they describe as stealth compensation arranged for Raymond but not disclosed in proxy filings. ... "It's entrepreneurial returns for managerial conduct ... Exxon was there long before Mr. Raymond was there and will be there long after he leaves. Yet he received Rockefeller returns without taking the Rockefeller risk." ...
Still, Raymond's package for 2005 stands out, even stripping the $98 million lump-sum value of his pension plan. He received $19.9 million in salary, bonus and other incentives for 2005. He made $21.2 million on options he exercised last year. And he was awarded 550,000 restricted shares, bringing the total he owns to 3.26 million, with a value of $199 million, at $61 a share, an average of Exxon Mobil's share price since March 1. Some of the restricted shares vest in 5 and 10 years. He owns more options that hold a value of $69.6 million.
While generous, the other major oil companies have been much more restrained with their top executives. ...
Still, the record for total compensation in one year goes to Steve Jobs, who received $775 million, mostly from stock options, in 2000 from Apple Computer. Michael Eisner, the former head of the Walt Disney Co., took home $577 million in 1997, also largely from stock option exercises.
Apparently reading comprehension isn't one of your strong suits. This isn't about me. It's about the threat these kinds of people pose to the model of free-market capitalism. But I would imagine that, given your obvious dysfunction, that's a subtlety that has escaped you.
I see hidden in the "satire" an obtuse pride in capitalizing on the misery of others. My statement stands.
Worse yet, you have people who are actually proud of themselves for exploiting the situation. The day traders and speculators, for example. They are lower than low.
You're correct, thanks.
Now, what do we do about the decline.
Kuwait's Burgar field, worlds 2nd largest, last year 2.1 mb/d, now 1.7 mb/d at max production
Mexico's Cantarell field, now 2.1 mb/d, by '08 will be only 1.0 mb/d
These price gouging forums always bring out the people who like to watch the price go up and say it all a part of free enterprise.
I am all for free enterprise, but there comes a time when Supply and demand becomes an opportunity to gouge.
Now when a Company shows profits like these and a CEO takes home 400 million dollars in a retirement package , a man like me making less than $50,000 a year starts to wonder just what is the limit.
A lot of people will say its my fault for not getting rich, maybe it is. I have worked a lifetime, bought my own home,own two cars a small 17' boat, and I dont owe anyone a dime. When I start seeing my lifestyle change for the worse because of fuel prices, higher costs of everything I need because of freight charges, my electricity going up 70%,my property being raised, my nest egg turning to crap and some thieving buttwipe taking home a half billion dollars for coming up with the idea of overcharging me for a commodity-----I start bitching.
So far I have been called a fool, a Marxist, and a Socialist. I am none of these. I am a Patriotic American Veteran who votes Republican and I am in a squeeze and I am not alone.
Every penny extra we pay for higher electricity, higher heating fuel, higher gasoline, higher taxes, higher health costs , is a penny we dont have to fuel the rest of the economy, How long can that economy stand this pressure?
One lady in here called me a socialist and said I should leave the country if I didnt like being ripped off. I am glad she is rich and likes paying $3.00 at the pump, Me? I just like being able to make ends meet and like to take a ride once in a while to see the beauties of the country, I wont be taking that ride this year. Its going to hurt the tourist industry , a lot of folks wont be going.
OOOOPS!
Gee I thought Free Republic was a Conservative Website. Surprise to find someone like you here pushing Socialist Class Warfare dogma.
"Valero, not noted that much is retail gas stations, is one of the biggest, if not the biggest refiner, with 18 refineries in North America and the Carribean.
Valero revenues were $81 Billion last year, and if you add all the sales to the majors, taxes etc, probably their eqquivalent retail volume was in the $200 billion range."
Holy cow! Are you serious? Dang, I didn't know that. I had never even heard of them before. At first it was Diamond Shamrock, then all the Diamond Shamrocks became Valero. Dang!!!!
"Overall, I pay less by paying more. I go to the cheapest gas station that takes credit cards. My credit card gives me 5% cash back and since I always pay off the balance every month, it is worth it. Before I got this credit card, I went to Arco and just paid cash. I average $10 a month cash back."
I don't get that kind of a deal with my card. If I want any kind of cash back, I have to pay a fee of $110 in order to get as much a $100 back. A very bad deal.
Good Morning! I, too, have rebooted. Have a cool day.
Shareholders certainly have the grounds to gripe and nag, and they do it all the time. Lucky for you owning XOM isn't compulsory -- the government can't force you to increase your net worth with equity ownership. So, you can dump that dog any old time you want. But then, you would have nothing to complain about, though I bet you'd find something...
Not necessarily pride. But when oil stock was at a ten year low and gas was $1.19 a gallon you were complaining and I was busy buying stock. Now when Oil stock is at an all time high and gas is almost $3 a gallon you're still complaining and I'm reaping the rewards of prudent investment 6-7 years ago. I adapted you didn't. Plain and simple. Now if gas stays high I can sell my stock and use the proceeds to offset the additional cost. But I doubt that will be needed as I have adapted my lifestyle and income to absorb the additional cost of gasoline. But you're still complaining.
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