Former Exxon CEO Defends $150M Pay Package

money.cnn.com ^ | April 19, 2006 | staff

[kellynla]

NEW YORK (Reuters) - Never one to back away from confrontation while head of ExxonMobil Corp. for more than 13 years, Lee Raymond showed few signs of mellowing in retirement in his first public appearance following the controversy that erupted with the disclosure of his multimillion-dollar retirement package.

In a 90-minute talk at Columbia University on Tuesday evening, Raymond was unrepentant for any past decisions he had made and he blasted politicians, the U.S. car industry, Wall Street, environmentalists and other critics of the oil industry for what he said was their failure to understand the nature of the energy business, conceding only that he had been unsuccessful in getting his point of view across.

[kellynla]

"Back in 1998, when prices went down to $10 (per barrel), I don't recall anyone in Washington calling me up and saying 'what can we do to help.' But I didn't want them to be calling up. That's our job. We are in that business. It's our job to manage the risk. I am not interested in hearing from (politicians) when prices are at $10 and I am not interested in hearing from them when prices are at $40 or $50," he said.

[mewzilla]

I wonder how many pols up on the Hill own Big Oil stock...?

[rellimpank]

--amen--I have made essentially the same remark on the line of "did you thank the oil companies when you were paying $1.00/gal a few short years ago/"--

--usually it's a sure conversation stopper--

[pabianice]

In 1992, while Digital Equipment was laying-off thousands of long-time employees, Robert Palmer, the guy who had mounted the palace coup that ousted company founder Ken Olsen, gave a company-wide CCTV address. As we all watched, stunned, Palmer talked about how he had just given himself a 100% salary raise, pausing to say, "I feel good about it!" As he was speaking, I watched several dozen glazed-eyed, just laid-off employees being frog-marched by Corporate Security, out the door, their entire histories with DEC contained in the cardboard boxes they were clutching. Six years later Palmer finished killing DEC and rode-out of town in a bullet proof limo with a $52 million pay-off.

No one supports capitalism more than I, but this sort of wretchedness needs to be curbed.

[Realism]

failure to understand the nature of the energy business

Well the government understands, and the greater the contributions the more understanding they will be.

[mewzilla]

No one supports capitalism more than I, but this sort of wretchedness needs to be curbed.

Funny, I was thinking the same thing about federal, state, and local governments and all they money they're making off gas taxes.

[butternut_squash_bisque]

"Back in 1998, when prices went down to $10 (per barrel),..."

I don't remember that, at all. $10/ bbl? Is that true, k? Good gosh, I sure don't remember that low price on oil...

(((sigh)))

[steve-b]

Back in 1998, when prices went down to $10 (per barrel)

See what a good job Clinton did! [ /SARCASM ]

[linda_22003]

I don't remember the price per barrel, but I do remember Christmastime that year, paying 76 cents a gallon in eastern North Carolina. It really did go down a lot for awhile there (so did my stock....).

[EQAndyBuzz]

"No one supports capitalism more than I, but this sort of wretchedness needs to be curbed."

I agree. We should start with the NY Times.

[kellynla]

Here's a good chart of historical crude oil prices since 1946 both average per year and adjusted inflationary prices per year.
http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp

[psjones]

Gas was also down to a dollar a gallon the winter after
9-11.

[brownsfan]

"No one supports capitalism more than I, but this sort of wretchedness needs to be curbed."

You'll find very few here that truely agree with that sentiment.

[traviskicks]

"Back in 1998, when prices went down to $10 (per barrel), I don't recall anyone in Washington calling me up and saying 'what can we do to help.' But I didn't want them to be calling up. That's our job. We are in that business. It's our job to manage the risk. I am not interested in hearing from (politicians) when prices are at $10 and I am not interested in hearing from them when prices are at $40 or $50," he said.

I wish I had the transcript of this speech. I'd like to see oil companies hold hearings and haul some of these Senators in front of them. We deserve explanations.





Libertarian ping! To be added or removed from my ping list freepmail me or post a message here.

[D-Chivas]

I can't wait for Iowa Senator Tom Harkin to start complaining about this, especially since his wife used to be an executive at Conoco.

[HoustonCurmudgeon]

I wonder how many pols up on the Hill own Big Oil stock...?

I wonder how many FReepers own big oil stock?

Put me down for Exxon, inherited from my 8th grade educated, Democrat grandmother who bought a share or two every time she could.... anyone can buy the stuff.

[canuck_conservative]

As outrageous as the payout is, it is a public company's right to pay their employees as they see fit. If the shareholders don't like it, they can vote to change the board of directors. And Exxon is swimming in money right now, although thanks is probably due more to the artificial boost from Bush's Iran-attack rhetoric.


But reading the article, he does sound like a solid, sensible manager. When was the last time we heard a CEO defending a long-term focus over short? That's a refreshing change.

[Prokopton]

"Back in 1998, when prices went down to $10 (per barrel), I don't recall anyone in Washington calling me up and saying 'what can we do to help"

In 1998 ExxonMobil had net profits of $6.37 billion and Raymond was paid $17.32 million. I don't think the crybabies needed any help.

[Barney Gumble]

Yeah, but he has an overinflated opinion of his own self worth. Exxon made a lot of money because the price of oil has gone up. Simple as that. It wasn't some grand leadership on Raymond's part. So he takes all the credit & $400 million, while leaving employees with what? The probably got a lousy 3.5% raise.

[linda_22003]

Put me down for a few thousand shares of XOM.... I worked at Mobil for several years, more than a decade ago.

[mysterio]

I love how they keep going back to the 2 months in '99 when oil was cheap. It has been expensive enough more than long enough to make up for that, so pardon us proles who are tired of being forced to pay too much to buy your expensive product.

[VA_Gentleman]

I own Exxon stock, and I smile every day. I also own an energy based ETF which has gone through the roof too.

[1Old Pro]

I am not interested in hearing from them when prices are at $40 or $50," he said.

What about 70 or 80

[kellynla]

and the stock went up FIFTY PERCENT IN TWO YEARS!
folks don't have to buy Exxon/Mobil gas
and they sure don't have to buy Exxon/Mobil stock
but if they had bought the stock two years ago, they sure as hell wouldn't be complainin' today now would they. LOL

and if folks want to complain about the price of gas;
they should complain about the taxes which accounts for forty to fifty cents per gallon as opposed to the dime a gallon the oil companies' stock holders make and the dime a gallon the station owners make...

[Politicalmom]

Well, WE never saw that translated in gas prices, silly!! : /

[petercooper]

Yup, I'm sure Exxon employees have not had an opportunity to benefit from this. /sar

[Political Junkie Too]

$10/barrel seems more like a 1988 price than a 1998 price. But, after 40 years at Exxon the decades all begin to look alike.

-PJ

[petercooper]

[linda_22003]

That bears an astonishing resemblance to my portfolio, overall. :)

[linda_22003]

Wow, look at the difference between gasoline and Bud Light - and gasoline has to taste better than THAT!

[fhlh]

I've never liked this comparo.... I've never had to buy 20 gallons of 'starbucks' every week.... although, I prolly go thru 20 gallons of beer :)

[kellynla]

Please post that graphic you have of the percentage of costs of crude,taxes,marketing,distribution per gallon of gas

thanks, Kelly

[butternut_squash_bisque]

"Well, WE never saw that translated in gas prices, silly!! : /"

I think you're right, P, as I don't remember cheap gas *at the pumps*, around here, for many, many years now.

[petercooper]

[kellynla]

"Well, WE never saw that translated in gas prices, silly!! : /"

"I think you're right, P, as I don't remember cheap gas *at the pumps*, around here, for many, many years now."


Weekly Retail Premium Gasoline Prices (Including Taxes)http://www.eia.doe.gov/emeu/international/gas1.html

[sticker]

I want the politicians, especially chuckie shumer(sp?), complaining about the Exxon CEO's retirement package to defend their retirement benefits

[Alberta's Child]

"I am not interested in hearing from (politicians) when prices are at $10 and I am not interested in hearing from them when prices are at $40 or $50."

Sounds like this guy doesn't want to hear from politicians, PERIOD.

We ought to etch that quote in stone and burn it into the minds of every high school student in this country.

[kellynla]

And here is another chart of CA retail prices since 1996
http://www.energy.ca.gov/gasoline/retail_gasoline_prices.html

[Alberta's Child]

How much do you charge for gasoline?

[butternut_squash_bisque]

Thanks, k.

[SJSAMPLE]

No one supports capitalism more than I, but this sort of wretchedness needs to be curbed.

Well, then.
I guess there are people who support capitalism more than you.

[kms61]

Rush was using that same argument today, and it just made him look silly, IMHO.

Beer and starbucks coffee are not necessities. And very few individuals have to buy milk several times a week in 20 gallon increments. If they did, you'd hear people hollering about the price of milk. Apples and oranges.

[July 4th]

In case you missed it, ExxonMobil is doing pretty well.

[jdm]

Critics would argue that water and gas are the only two things required (of those pictured).

[SJSAMPLE]

I'm not hearing anybody at Exxon crying.
It's the public (at large) and our wonderful Congress-critters that are doing all the bitching and moaning.

[kms61]

The guy says that, but Exxon employs hundreds, if not thousands of lobbyists at all levels. You can bet he WAS interested in hearing from government when it suited him. Most corporate CEO's don't believe in the pure capitalism model any more than Bill Clinton does.

[CarolinaGuitarman]

"It has been expensive enough more than long enough to make up for that, so pardon us proles who are tired of being forced to pay too much to buy your expensive product."

How dare they sell their product at a rate that makes them about a 9% profit margin! Why, what other company has a 9% profit margin? Well??? Oh wait, a lot do.... nevermind. :)

[Alberta's Child]

Beer and starbucks coffee are not necessities.

Gasoline isn't, either. Human beings survived in this world for thousands of years without a combustion engine.

And even if it is a necessity for all intents and purposes, I'm always struck by how loudly people complain about the costs of "necessities" like gasoline, medical care, etc. because of the way the spiraling costs of these things interfere with their ability to pay for things that absolutely are not necessities in any sense of the word.

[kellynla]

but if you look at the costs involved in every gallon of gas, the oil company stock holders make about a dime and the retailer makes a dime per gallon...
if you reeeeeely want to complain, I suggest you complain about the taxes on each and every gallon of gas sold which amounts to forty to fifty cents per gallon depending on where you live and buy gas...and just be thankful that I guess you don't live in Europe! LOL
check out the graph I linked of the costs of gas in Europe(Post #35)

[HamiltonJay]

Of course it does, but don't expect the blindered idiots that chant "The Free Market is God" mantra that tend to orbit these threads to agree with you.