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Exxon Chairman’s Retirement Package

Mind you, this is a greater sum than the Gross National Product of many third world countries. We have homeless, people in poverty and without medical insurance, but this guy is taking home what??? (My comments will continue below the article)

From ABC News

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.

It’s me again…Way back in the early days of automobile manufacturing, Henry Ford wanted to invest a huge chunk of his company’s profits into his employees. His stockholders took him to court – and WON – basically determining that a corporation’s first priority was to its stockholders. While I realize Raymond was responsible for increasing the stock 500%, do you think any of the stockholders have realized dividends even remotely nearing this guy’s compensation? Don’t you think they’d like to??

At
http://www.exxposeexxon.com/, they offer a form letter to Exxon executives. Honestly, I believe the best way to kick these guys in the nuts is to go to our elected officials; what the hell do the Exxon Executives care if we’re pissed? We’re not stockholders or lawmakers. So, if you surf over to www.congress.org, you can type in your zip code and it will gladly tell you who your state and federal representatives and senators are. You can even send them emails directly through the site.

It’s completely abhorrent that a company can continue to make such excessive profits off the back of the American people. Believe me, I tuned in to C-Span during some of those congressional hearings and their CEO had a half-smirk on his face during his entire testimony. They truly believe they’re untouchable. Keep in mind, this is the same company responsible for the Valez oil spill and did everything possible to wrangle out of cleaning it up.

In the meantime, don’t buy your gas from Exxon or Mobile. At least BP is investing in alternative fuel sources. They don’t see it as hurting their current business but preparing for the future instead.

One reply on “Exxon Chairman’s Retirement Package”

interesting post on the exxon thing.

you may want to consider this article on gas prices versus the benefits of economic growth, which references these profits as an example of the fact that most of the growth has not benefitted average American workes in the form of higher real wages.

you may also, given your blog, find this interesting.

by the way, who won your state in 2004?

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