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.
So Raymond got:
Salary $4.0 million
Bonus $4.9 million
Stock options $32.0 milion,
Stock Dividends on the stock he owns $3.1 million
Annual pension about $7.0 million, or present cash value of $98 million.
That's on top of the $225 million in stock that he owns, and
Stock options with a market value of $252 million
He should thank OPEC!
And "OPEC pricing?" Please -- dispense with the thoughtless cliches. There's bit more going on in the energy market than "OPEC."
Seems like a lot, but its not my money nor my place to tell Exxon what to do with theirs.
I love the free market. But something is wrong here. How come my neighborhood Exxon station is not offering me newspaper coupons to buy their gas instead of Shell's?
That's the way it works in the pizza business. Something is otta wack here. It's long past time that SOMEBODY looked into how these companies do business. And I mean somebody that can't be bought.
Who? I have no idea.
Time for the Free Traders to chime in and insist that Exxon is just a buncha good ole boys never meanin' no harm, and that we should be glad to pay whatever they ask for gas because they're shining examples of the capitalist ideal.
So what do you want. The government to cap CEO bonuses.
If the stockholders are ok with it, then I'm ok with it.
(*lwp = liberals without principles)
so
Oh yeah.
Raymond is a HUGE 'outsource everything at all costs'. Trust me on this, he move a TON of jobs out of the US for the hell of it.
Bet compensation for Hollywood Producers is up in a down movie market.
if you are going to get top talent to run one of the largest companies in the world, you are going to have to be willing to pay for performance. His compensation contract would have been made years ago, and the reason the package is so big is due to his stock and option holdings, which reflects in great part the financial success of the company and its merger with Mobil. Also worth noting that the bulk of his package is STILL tied to XOM stock price.
I see I got into the wrong line of work.
8.2% profit ain't exactly much to brag about, especially when compared to last years profits in the pharmaceutical (18.5%) and banking industries (18%).
Pretty way of saying, "lobbying."
If you believe what's reported and what's actual is real, then I got some enron stock to sell you.
"Trust me on this, he move a TON of jobs out of the US for the hell of it."
He did? What types of jobs did he move out of the US for the 'hell of it'?
Nobody was complaining in the late 80's and 90's when Exxon execs were getting hammered and loosing money because the margins were squat.
I think its great...all the power to Exxon and the execs...
If you don't like the price of gas...ride a horse or skateboard...
States Gouge 1.6 BILLION In Excess Fuel Taxation
-----
Yes, the fat politicians and their fat corporatate buddies (which equals donors) have a real sweetheart arrangement going. And like everything else, all at the expense of the American citizen..
Oh, so their profit margin was greater than 8.2%? Prove it.
The NASC for one, much of the account department for 2.
I worked there. I saw it.
Clearly stock holders should be outraged... No wait, huge profits = nice dividends = happy stock holders. If you aren't a stock holder, it is like being Canadian and hating George W. Bush. "Frankly, we don't give a damn."
The increase in market cap is huge though.
You work in that funky looking short irving office building I bet.
Who cares really. If it doesn't concern Ol Jack and his family I do not care how much someone makes. Gas will be back down..maybe not $1.50 but it has got to give..sometime..I hope.
I guess they need the high prices so they can afford this, then. You can't blame them for that.
Supply and demand doesn't factor when you have Opec (an oligarchy) and a consolidated oil business (happened under clinton) selling it.
In the senate hearings Barbara Boxer, Hillary Clinton and some Republicans who I thought were democrats at first from the way they looked and talked... Were saying they could run the oil business better then people like Lee Raymond.
Under their leadership our world class oil industry would be even better, just like our public schools.
You cannot possibly be this dense can you? To start with, your Govt is not taking 25% of the price of your pizza in taxes off the top. Then you govt doesn't have a fixed profit line on gas so that the biggest cannot "under sell the mom and pops". Thus any measure of flex in gas pricing is eliminated by Regulation.
How about just ONE time the closet Socialists in the Whine all the Time Choir shut up and LEARN some basic Economics. We hear the same completely economically ignorant screams every time the price of gas goes up. How about you squeal at your GOVT for a change who makes %.50 for every $.10 of profit the oil companies make. Amazing how you all scream bloody murder about gas but just bendover when ever the tax man tells you too.
OK, and that was done just for 'the hell of it'. I see.
Who was more valuable to society, the CEO of Exxon, or your favorite NBA/NFL/MLB player? Let's not get into the politics of envy, folks.
--and how do you create domestic jobs in the oil industry--you can't drill or build a refinery--
A few weeks ago, EXXON passed Walmart as the 'biggest' corporation, financially.
WMT took the title away from GM (IIRC) several years ago.
Salary $4.0 million
Bonus $4.9 million
"Stock options $32.0 milion,
Stock Dividends on the stock he owns $3.1 million
Annual pension about $7.0 million, or present cash value of $98 million.
That's on top of the $225 million in stock that he owns, and
Stock options with a market value of $252 million
He should thank OPEC!"
he can just shop at Wal Marts like the rest of us, I don't care about his hardluck story
You tell me why it was done. And why so many working at ExxonMobil outside of the Irving royalty zone was miserable there. You gotta know, since I really suspect you're in that zone.
Curious how the Freeper Socialists never object to the $.50 cent in taxes the Govt takes out of each gallon compared to the $.10 the Oil Companies make. But that right, the pay masters at the DNC don't pay the Virtual Campaigners to tell the truth.
"I'm hoping O'Reilly and Congress makes him sweat a lot to earn a portion of it."
What a stupid thing to say. He's earned his money working for Exxon/Mobil, not Congress, not Bill O'Reilly.
If you aren't a stock holder, it is like being Canadian and hating George W. Bush.LOL! Well said!
I don't want to even hear the whiners who think this is excessive...
The United States consumes roughly 9 million barrels of gasoline a day...a barrel of gasoline equals 42 gallons...average tax on a gallon of gas equals 42 cents...
9M x 42Gal x .42 x 365 = $57,947,400,000 in State and Federal Taxes Annually!!!!
You read that correctly...58 Billion in taxes on fuel alone....
Don't forget we have a right to cheap gas.. Even though it is not in the Constitution... /s
"You tell me why it was done."
Maybe because it saved Exxon/Mobil some MONEY??? Are you aware that many companies do it for the same reason? Do you understand economics?
Oh, another assumption:
12 gallon gas tanks -> Consumer cost for the bonus: 6 cents per gallon over the course of the year
So should the chance to be fleeced by oligarcy oil and opec!
Guess what? America is a capitalist nation, the goal is to make money. If his company had lost money and it's stock had gone down during his tenure he would have been fired.
And OPEC only controls the SUPPLY of oil, they do not set the PRICE. And as Raymond and others have pointed out, if we opened ANWR and other places in the US, got rid of "boutique" fuel standards, and allowed more refineries to be built, the price of oil would drop dramatically.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.