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.
Shareholders own the company. We should be able to do a lot more than just gripe and nag, we should have a real say in the direction the company takes. That means a real say in who gets to sit on the Board. If you found a company and you keep it private, then it is your personal fiefdom. But the second you take it public, you should be held accountable to your shareholders.
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...
If I own a car and have hired a driver, and I don't like him, I can fire him. You're saying I can't do that, I have to sell the car. That seems ridiculous and an infringement on my rights. It isn't the CEO's company, it's the shareholders' -- he's just the manager they've hired to run the business.
"We have to raise prices because we're hurting like you..."Exxon and the other sisters.
Now let's see, the US government sold the strategic reserve to the oil companies after Katrina and Rita at $28 a barrel. The Sisters resold the products at speculated prices...
Then you have the Energy Department posting a seven-year high glut in US oil stockpile. Oil companies sitting on capped wells from the 1990's to give an impression that the reserves are lower. Mexico has hit an enormous reserve out in the Gulf, etc...
Then you have historical evidence that a war in the Straits of Hormuz already occurred in the 1980s with many tankers sank. Seven world navies were preparing for war. Yet gasoline prices dropped.
I think the Exxon Chairman should get the bonus because anyone smart enough to pull off the biggest scam since the 1970's oil crisis deserves much props.
Not me, buttkiss. But Exxon called and said you need to step and fetch. Good dog!
Not quite. Actually, I DID adapt. And still am. No, I didn't invest in the exploiters. It's not solely because of the moral misgivings I had; I also have a mortgage that's eating me alive so I didn't have a lot of disposable income to spare.
But my adaptations have done nothing but allow me to tread water. I'm driving half the car and paying twice the price for gas. Net result is zero to me. I've cut down on how much driving I do (I didn't do much to begin with), but I still have to drive occasionally. I buy ethanol-blend fuel, and if my car would run on E85, I'd use it in a heartbeat.
So I save a few nickles and dimes. And I give up a few other things. And I tighten my belt and I get by, like so many others.
In the meantime, this piece of human excrement walks off with $400 million of our money. What, $300 million wasn't enough?
Me: Ummm. They drive down costs. ...Otherwise we'd be doing those things that cost us less.
You: Please rephrase that comment so it makes sense and explain to me how high gasoline prices don't drive up the expenses of other businesses. Tell Dow Chemical or homebuilders that high gasoline prices are driving down the cost to do business.
Well, it might make more sense if when you write "Oil companies" you meant oil companies, and not "High Gas Prices". Respectfully, I can only respond to what you write, and not what you intend.
Oil companies provide oil, with which it is cheaper to do many functions than without it - in many cases even at quadruple current prices. Where it's not cheaper, we use things like coal, wood, ceramics, and animal or human labor.
Why didn't you refinance when the rates were rockbottom? Hell I screwed up and sold my house in '02 when I thought the value was peaking. I threw away another $50,000 by doing that. I created a business that failed after 3 years. Nobody's fault but mine. Sure there's a lot of people I could blame but I don't. "I'm driving half the car and paying twice the price for gas"
What's your cost savings for insurance and registration/tags? I'm sure the car gets better gas mileage then your SUV did.
"In the meantime, this piece of human excrement walks off with $400 million of our money. What, $300 million wasn't enough?"
But that's where you are wrong. It's not your money. Never was. As a stockholder I've have more right to complain then you do.
Surprisingly I agree with you somewhat. Most people do not like prices to go up, no matter what the object is you're looking to purchase. Whether it's a house, car, gas, food, anything; prices do go up. My salary today is much higher then what it was in 1990 or 1995. Nobody is complaining to me that I'm gouging them. I think at the end of the day we must agree to disagree on this one. Happy Easter!
Thanks. I'm a vet too. Yeah, none of these free-market lovers seem to realize it's driving up the price of everything, and hurting the country. If you want to buy say, a shirt, you can go to the place with the lowest price. That's how the free market is supposed to work. When gas goes up, however, the stations around here are all the same. I asked the girl at my corner station why that was. Her response: "We just look and see what everybody down the street is charging. Then we set ours accordingly."
Here is a frightening piece ofnews for you. I live in Maryland and gas stations here are required by law to stay within pennies of the gas station next door. One of the local gas entrepenours had this law put in when Wawa , Sheetz and others started putting a crimp in his business.
Yup staying up with the gas station next door is the law in Maryland.
I don't get it. Just what is the problem here?
I guess some conservatives resent rich people and don't believe in capitalism.
My guess is they make up for those shortcomings by being creationists. It takes all kinds.
Yup staying up with the gas station next door is the law in Maryland.
I'm all for Capitalism, but do you think it is possible to actually earn these types of funds.
The next Union bashing thread on FR will have numerous posts questioning why the rank and file would "take the company down" .
These types of compensation packages are why.
Exxon may have lost money, I'm thinking the execs did just fine though.
Everyones gotta start sometime. Debate the poster or not.
Hiding behind some perceived seniority superiorty is tiresome and juvenile.
I've read your posts before. You're better than that.
The poster had no merit. Her arguments were based on emotion. Lecture someone else.
Well, maybe I was wrong then, my apologies.
Please feel free to use your seniority as a member of this community to off-handedly disregard anyone else with less time here than yours.
It is refreshing to see emotional arguments refuted with such logical ones.
I seem to recall a recent story about the same kind of law in Minnesota.
Gasoline, whether by government regulation or by its limits as a natural resource, is the classic example of a commodity with a (relatively) fixed supply and a (relatively) captive demand. That means its price can go anywhere it wants, freed from the constraints of the marketplace. You'll pay what you're told to pay.
define "earn?"
No need to apologize. The post of mine which you originally responded to was just an observation by myself. That's all. It has nothing to do with any 'seniority' around here, nor is it related to 'off-handedly disregarding anyone' who has less time on FR than I. I'm amazed you read through 500+ posts on this thread and felt like mine was the only one worthy enough to pass judgement on. I appreciate your concern and thoughtful attitude. Have a Happy Easter!
Then don't buy their gas.
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