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.
Excellent point. Airline execs make seven figures--and the entire industry has a NET LOSS for its entire history!!!
disgraceful. this isnt free market or competition. this is boardroom sleaze.
"You and I know why their profits are up,"
Would you consider YOUR income on the increase (i.e. your profits up) if you were able to keep 8.2 cents of every dollar you earned?
Sorry, my original point still stands. Exxon and Shell should be competing for my business. Calling me names doesn't explain why competition is not working in this case.
Great points. Good Morning America had a segment on this morning about the Exxon Chairman's retirement package, his salary, perks, etc. At the end of the report, which of course left off your points about how much the government makes in compairson to the profit Exxon makes, the reporter sneered and said, "That's capitalism for ya."
Actually yes, once I got away from Exxonmobil my money is up. BFD. The place was a horror show to work for outside of that short building in Irving, which I still assume you must work at if you have some fanatical support for it.
Right. Gasoline is still cheaper per gallon than orange juice and they probably have illegal aliens doing some of the work.
So Exxon is a "great company" under Raymond leadership???
Last year the company made $36 billion after tax.
??What did they do with that cash????
They spent $13 billion in property palnt and equipment, about the same as in recent history. (their P&L notes they spent $964 million, down ($150 million), in exploration and the write off of dry holes
They spent $18 billion to buy back their own stock, which was trading at the highest prices in their history. Why?? Because they couldn't find any better investment in the oil industry than retiring stock that was paying a 2.1% dividend. They could have invested the cash in Treasury shares that are yielding 4.5%!
Why? Who knows, but the effect of buying back stock boosts the price of the shares, and Raymond was probably one of the biggest recipients of the higher stock price, in this, his retirement year.
??Why couldn't they have made a major investment in alternative energy sources, for the long term benefit of the company, if they weren't willing to invest to find a developable petro deposit??
Strong management - I think not!
A Company with vision - I think not!
A company that rewards current shareholders at their long term detriment - I think so!
A Company that rewards their retiring Chairman and President - BINGO!
EXACTLY. The goverment makes MORE per gallon than the oil companies do--and the oil companies take ALL the risk.
Also, you missed the point. Why are their profits up. Think about it. OLIGARCHY
Were you pumping gas or working in an office? What was your role there? And you sold all of your Exxon/Mobil stock. Right.
Sorry, my point still stands. Exxon and Shell should be competing for my business. They aren't. I am just old enough to remember a time when my Dad would drive into a Texaco and four men would RUN out to greet him, wash his windows, check his oil, tire pressure, and put in four dollars of regular, which would fill the tank.
Something has changed, and I think somebody should be investigating just what that is.
"A Company that rewards their retiring Chairman and President - BINGO!"
It's their decision. Pure and simple.
I don't shop at Exxon. I get my gas at Valero. They are much smaller company from what I know. They are also cheaper.
I was at the 35 Ln old Mobil building. With the horse on top. I know plenty about the rotten bussiness practices of lying to employees and offshoring at any whim, for nothing but maybe .01% of this guy's retirement bonus.
No sense in making the mom and pop operator eat the loss. THEY aren't the ones gouging me ...
- use biodiesel
My car doesnt' burn diesel.
get powered by moonshine
That's fine for ME, but what's the CAR going to run on ...?
or fly a broom instead.
I've got two ex-wives already doing that.
Or maybe Hugo Chavez will take pity at you and give you some subsidized gas.
I've got some non-subsidized "gas" I'll give Hugo Chavez ...
Each company decides WHERE they put stations, how many stations are located in a specific location,,,and in case you haven't noticed, they now ALSO compete with Russion oil companies (LUKOIL is opening stations in many, many cities), British oil companies (ever heard of BP)?
No offense, but I suggest you stick with the pizza business.
[He should thank OPEC!]
And the politicians who voted (after lobbying) for subsidizing the oil industry with military protection and tax brakes for the exploration they never did.
Do you have any sources or a time frame for your statements? The government makes money off gasoline taxes that are paid by the American people, not Exxon. The oil companies or more of a drain on the American economy than an asset because they drive up the costs for almost every other business in the country.
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