xxon Chairman Gets $400 Million Retirement Package Amid Soaring Gas Prices

[annihilation]

http://abcnews.go.com/GMA/story?id=1841989&page=1


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.

[Violet Fashion by Mindy]

The reason why gas prices are so high is not because of supply and demand.

Rather it is because the oil companies have been closing refineries.

I remember the Saudi oil minister saying "we are pumping more oil then what the oil companies have the capacity to refine. The oil is just sitting in drums because the oil companies are reducing refinery capacity. Refined oil prices are not because we cant supplu"

[annihilation]

Lets not forget the inflated price over the instability in Iraq and in the middle east in general. I heard that tacks on another 10 bucks a barrel.

[Greek soldier]

The reason why gas prices are so high is not because of supply and demand.

It is rather because more people prefer to fart and keep their body and house warm

[ed316]

I'm jealosu of Brazil. They are not going to import oil starting next year. Our politicians lack the will.

[Violet Fashion by Mindy]

Australia used to have 4 refineries. Now we have 1.

Oil companies only use the instability in the Middle East to garner more profits.

It's their excuse.

[Greek soldier]

I'm jealosu of Brazil. They are not going to import oil starting next year. Our politicians lack the will.

Well, the USA has the ability and the capacity to produce bio-diesel, what Brazil is actually doing.

[annihilation]

Well, the USA has the ability and the capacity to produce bio-diesel, what Brazil is actually doing.

The problem is we don't.

[Miles.]

The problem is we don't.

http://www.biowillie.com/

It begins. Thank Carl's Corner, Texas (a famous truck stop with its own township) and Willie Nelson. And the Texans who support and fund its development!

More info on Carl's Corner, Texas: http://www.wnbiodiesel.com/locations-TX-Carls%20Corner.html

[mattnwnc03]

burn in hell motherf**ker. taking food out of my daughters mouth.

[annihilation]

http://www.biowillie.com/

It begins. Thank Carl's Corner, Texas (a famous truck stop with its own township) and Willie Nelson. And the Texans who support and fund its development!

More info on Carl's Corner, Texas: http://www.wnbiodiesel.com/locations-TX-Carls%20Corner.html

Great start and dont get me wrong, this is great. One bit of trouble though. Most cars today run on the crappy engine of gasoline. Bio fuels can only work on desiel engines. :(

What we need to do is have all cars makers start producing the majority of their cars with desiel engines. Not only do they get better gas milage than normal gas engines but they can use bio fuel.

Only thing is that they need to remove the sulfur content in the fuel. I think bush delayed that deadline yet again to 2008 or so.

[askDNA]

The reason why gas prices are so high is not because of supply and demand.

Rather it is because the oil companies have been closing refineries.

Part of that is true. There are a couple of reasons why there is a decline in the number of refineries in the US:

1) New environmental protection laws stop them from being built. That isn't only true for refineries. I believe the US only has 4 liquefied natural gas ports and all the proposed expansion ports have been blocked.

2) It costs a lot more to have a US worker in a refinery than one in a place like Saudi so most of the time it is unprofitable to operate them. Yeah now the price is good so it is worth expanding if the price is sustainable in the long run.

I'm glad he is getting paid that much because he took huge risks in keeping the world supplied and his company profitable. I think it's funny how so many of you complain about oil companies doing their job and doing it well. Would you rather see them in the red? You want to have your place heated, your electricity working, and your transportation but when an oil company makes money you just bitch. Exxon and the others aren't just making lots of money because of the price, they are running their business very well. They're not pvssies like BP who try to change their name to Beyond Petroleum and act is if they are the Sierra Club in the industry, instead they focus on their business and get it done.

I'm not happy that we import so much oil, but I know if we didn't and if it was required for us to only have refining in the US you guys would not even want to know the gas price.

Ethanol is just a plain bad idea though.

[StukaJr]

This is surprising? A salary disparity between base employee in corporation (I mean professional) is as high as 400 times, if not higher. I remember my first managerial position in the City yielded me a 10K Stock Options grant with a 2 year vesting period - a CFO hired the same week received 2 million options pre-vested... Now, this is a sign on bonus at a company that burnt through its investments instead of making a profit - imagine the disparity in a company of a Fortune 500 Caliber.

No matter how consumer/economy is doing - the very top end of the food chain is raking in cash exponentually higher than anybody's wildest dreams

[annihilation]

Part of that is true. There are a couple of reasons why there is a decline in the number of refineries in the US:

1) New environmental protection laws stop them from being built. That isn't only true for refineries. I believe the US only has 4 liquefied natural gas ports and all the proposed expansion ports have been blocked.

2) It costs a lot more to have a US worker in a refinery than one in a place like Saudi so most of the time it is unprofitable to operate them. Yeah now the price is good so it is worth expanding if the price is sustainable in the long run.

I'm glad he is getting paid that much because he took huge risks in keeping the world supplied and his company profitable. I think it's funny how so many of you complain about oil companies doing their job and doing it well. Would you rather see them in the red? You want to have your place heated, your electricity working, and your transportation but when an oil company makes money you just bitch. Exxon and the others aren't just making lots of money because of the price, they are running their business very well. They're not pvssies like BP who try to change their name to Beyond Petroleum and act is if they are the Sierra Club in the industry, instead they focus on their business and get it done.

I'm not happy that we import so much oil, but I know if we didn't and if it was required for us to only have refining in the US you guys would not even want to know the gas price.

Ethanol is just a plain bad idea though.

I have no problem with them running a business. I have no problem with the record money they have made and I was oppose to the idea of double taxing them when their record profits came out.

I do have a problem with them asking and getting tax breaks from the government and loans for exploration when they are making huge record profits. I have problems with them putting "scientists" on the payroll to make sure they muddy up the whole global warming debate. I have problems with the loophole that was found about the use of public lands with out proper and full payment for its use (Doesn't hold against just the oil company).

What risks are you talking about? Exxon doesn't take risks, last year they did a 10 billion dollar stock buy back. While other companies took their money and further spent it on exploration, Exxon went and did a buy back. Exxon doesn't take risks anymore as alot of other oil companies do.

Also your comment about the last part about "required for us to only have refining in the US ". ALL fuel is refined in the USA. We ship crud oil from around the world and we refine it in America for American use. There are currently a handful or even less ships that could handle the transportation of gasoline. There are hundreds of ships that transport crude oil to all over the world. That is the common practise. Remember when katrina hit, we lost the refining process and that was what caused the prices to go up for gasoline.

Its the oil industry, the company can be run half ass and it will always make money.

[Miles.]

I forgot...

The laws of economics don't apply to oil companies. :roll:

StukaJr,

Could it be that the CFO is more qualified and experienced than the average management puke?

[remo williams]

No matter how consumer/economy is doing - the very top end of the food chain is raking in cash exponentually higher than anybody's wildest dreams
Yep. I wonder how much he pays in taxes on his income? much less than we pay out of ours. Do you think he's entitled to a tax cut or not?

[Flagg]

If you're upset about ExxonMobil and it's peers making a killing then do something about it.

Like finding ways to reduce your own personal dependency on oil based energy.

You all sound like crack addicts b!tching that the local crack house has raised rock prices.

Either pay up or reduce/eliminate your addiction.

The idea of "windfall profits tax" to "alleviate" the problem stinks of manipualtive and greedy government.

If you think prices are high now, consider the fact that it's still cheaper than Coca-Cola or bottled water.

Which can YOU live without?

And which will you have no choice but to purchase unless you consider making lifestyle changes?

[remo williams]

I don't smoke crack or oil.Hell I can't even afford insurance on what I make so I don't drive anymore. I'm not a fan of suv's though. I just wonder why we don't do the ethanol thing like Brazil. It seems to work fine for them over the last ten or so yrs they've been using it.

[ed316]

You can't blame this guy for making money. It's not his fault that our politicians lack the will to get us off ME oil. The only people to blame is ourselves and elected officials.

[Kaapeli]

Never, EVER complain about the bosses' salary and raises. That's communism & socialism.
Only the lower classes get paid too much.

[annihilation]

If you're upset about ExxonMobil and it's peers making a killing then do something about it.

Like finding ways to reduce your own personal dependency on oil based energy.

You all sound like crack addicts b!tching that the local crack house has raised rock prices.

Either pay up or reduce/eliminate your addiction.

The idea of "windfall profits tax" to "alleviate" the problem stinks of manipualtive and greedy government.

If you think prices are high now, consider the fact that it's still cheaper than Coca-Cola or bottled water.

Which can YOU live without?

And which will you have no choice but to purchase unless you consider making lifestyle changes?

Haha now thats funny considering oil is in our lives directly and indirectly. The whole society is a oil / CO2 based economy.

[askDNA]

What risks are you talking about? Exxon doesn't take risks, ... Exxon doesn't take risks anymore as alot of other oil companies do.

ALL fuel is refined in the USA. We ship crud oil from around the world and we refine it in America for American use.

Its the oil industry, the company can be run half ass and it will always make money.

:cantbeli:

Go say these things to people that worked in the industry in Houston during the 1980s. There really is no point in having a debate with you if you make statements that outrageous.

[askDNA]

I just wonder why we don't do the ethanol thing like Brazil.

If you wanted half of our gasoline to be from ethanol it would use up the majority of our farm land. High gas prices or high food prices, you decide.

[Kaapeli]

If you wanted half of our gasoline to be from ethanol it would use up the majority of our farm land. High gas prices or high food prices, you decide.

It would propably mean cheaper food because US food industry is heavily subsidised and imported stuff is almost always cheaper without the tariffs.

[annihilation]

:cantbeli:

Go say these things to people that worked in the industry in Houston during the 1980s. There really is no point in having a debate with you if you make statements that outrageous.
Dude then show me the links to prove me wrong that we get refine gas outside of the north america area???

I made my points if you have an issue with them than debate them. If your going to say its not worth your time then that means you have nothing to back yourself up with then. So STFU.

[annihilation]

If you wanted half of our gasoline to be from ethanol it would use up the majority of our farm land. High gas prices or high food prices, you decide.

http://science.howstuffworks.com/question707.htm

No one said we need to use half of our gasoline as ethenol. Also we can use the coal to gas conversion that looks to have alot of potential.

[askDNA]

Dude then show me the links to prove me wrong that we get refine gas outside of the north america area???

I made my points if you have an issue with them than debate them. If your going to say its not worth your time then that means you have nothing to back yourself up with then. So STFU.


U.S. crude oil imports averaged over 9.5 million barrels per day last week, down 414,000 barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged over 9.7 million barrels per day, a decrease of 345,000 barrels per day from the comparable four weeks last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 1.1 million barrels per day, the tenth consecutive week it has averaged over 1 million barrels per day, and the largest such streak ever. Distillate fuel imports averaged 221,000 barrels per day last week.

http://www.123jump.com/economy-story/Crude-Oil-Inventories-Advance-Again/17222/
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/current/txt/wpsr.txt

Even Iran doesn't have the capacity to refine so it imports 40% of its gasoline.(http://www.newsday.com/news/opinion/ny-opisr144701407apr14,0,3252600.story?coll=ny-viewpoints-headlines)

[askDNA]

http://science.howstuffworks.com/question707.htm

No one said we need to use half of our gasoline as ethenol. Also we can use the coal to gas conversion that looks to have alot of potential.

The article just talks about how expensive ethanol is. And yes we can use coal to be converted to gas. Are you going to debate how the coal owners in WV shouldn't make big profits now?rofl

[ed316]

Exxon is a business and businesses are there to make money. America is a capitalist country and they are just making money. India and China are helping drive up oil prices also. They are getting it from the same place we do.

[Flagg]

I don't smoke crack or oil.Hell I can't even afford insurance on what I make so I don't drive anymore. I'm not a fan of suv's though. I just wonder why we don't do the ethanol thing like Brazil. It seems to work fine for them over the last ten or so yrs they've been using it.

It would appear Brazil has made the most progress in reducing/eliminating it's own dependency on FOREIGN oil, but Petrobras(Brazil's largest national oil company) possesses significant assets within Brazilian jurisdiction.

It sounds like they've intergrated their agricultural and auto manufacturing industry to be more "flexi-fueled". SO maybe countries should be looking to them for ideas on how to reduce their own problems.

[Flagg]

Haha now thats funny considering oil is in our lives directly and indirectly. The whole society is a oil / CO2 based economy.

There are three things in life:

1.)Things you can control

2.)Things you can influence

3.)Things you can NEITHER influence or control

I'd say work on #1 + #2

[StukaJr]

StukaJr,

Could it be that the CFO is more qualified and experienced than the average management puke?

Considering that I was writing production guidelines and making a spec for the entire company - I think I knew enough to receive a better share... The CFO in quiestion sold all of the shares in a 6 month period and was off to a better offer - his exact qualifications were "being a friend of a friend".

Actually, my experience was a miniature Enron and a milder version a dot-com burn out - Chief *Anything* Officer was always a friend of a friend, there to fleece millions one moment, gone to a fortune 500 company in 6 months. Qualifications I've noted? Ability to lie, deny and sell one's mother for a binge.

This world will be on the brink of collapse and there will be low lives looking to build an empire - fair corporations are far and few in between...

[Flagg]

Considering that I was writing production guidelines and making a spec for the entire company - I think I knew enough to receive a better share... The CFO in quiestion sold all of the shares in a 6 month period and was off to a better offer - his exact qualifications were "being a friend of a friend".

Actually, my experience was a miniature Enron and a milder version a dot-com burn out - Chief *Anything* Officer was always a friend of a friend, there to fleece millions one moment, gone to a fortune 500 company in 6 months. Qualifications I've noted? Ability to lie, deny and sell one's mother for a binge.

This world will be on the brink of collapse and there will be low lives looking to build an empire - fair corporations are far and few in between...

Too much "bad news" in this thread. Have a look at Fortune Magazine's annual "Best Companies To Work For" issue. There are a LOT of high profile good ones.

There will always be companies where management selfishly screw staff.....and it will always get media air time since it makes for a good story.

Unfortunately, senior management's average compensation multiple compared to average company wages has exploded in recent decades.

But I don't necessarily blame corporate management for it. The same goes across society in professional sports, entertainment, etc. So it's not an anomaly.

SOME people are certainly worth it based on their track record.

If a CEO, CFO, etc is responsible for leading a shareholder value increase measured in tens or hundreds of billions, is tens or hundreds of millions in compensation that extraordinary?

IF compensation is deemed excessive, shareholders have the right to effect change.

[mattnwnc03]

Exxon is a business and businesses are there to make money. America is a capitalist country and they are just making money. India and China are helping drive up oil prices also. They are getting it from the same place we do.
well its one thing to make money, but what their doing is wrong.enough is enough, their draining peoples pockets. people who have more to worry about , other than buy their next paintball gun, or add on laden firearm.there are people here that dont live with mommy and daddy who have children to feed, mortages, health bills, property taxes to pay. high gas prices is what they dont need.i guess the oil guys kids needed that new bmw, or their 6 bedroom house in the bahamas was getting a bit too cramped.like the oil men are just getting by on their small paychecks, they needed the retirment bonus to make sure their great, great , great grand kids dont have to worry about working ever again.

[Daniel1115]

We're not Brazil, but we do produce a good amount of sugarcane here in Louisiana:

Jindal: Make cane into fuel
David Jacobs
Staff Writer

Is it possible that the solution to America’s dependence on foreign oil is growing all over Lafourche Parish?

U.S. Rep. Bobby Jindal visited the Raceland Raw Sugars plant Monday evening, meeting with local growers and discussing how locally grown sugarcane can be part of the nation’s long-term energy solutions.

Sugarcane can be made into ethanol, a clean-burning fuel that can be used alone or as an additive with other fuels. While corn grown in the Midwest is the most well known source of ethanol, sugar growers and refiners say it can be made from sugar cane far more efficiently.

Officials with Raw Sugars said they already have plans on the drawing board to begin producing ethanol at their site, but need money to get started.

“At the appropriate time, we’re going to need you to open the door for us,” to federal funding, said Dan Duplantis, the plant’s general manager.

Officials wanted to know what sort of assistance they could get through guaranteed government loans.

Jindal said money could come from the federal Department of Energy, from Louisiana Recovery Authority block grants, or from the GO Zone program, which consists of $7 billion in tax-exempt bonds for businesses in hurricane-affected areas.

Jindal said using ethanol for more of the nation’s energy needs “makes too much sense not to do it.”

It’s environmentally friendly, helps the state’s economy and contributes to national security by making the country less dependent on foreign sources of oil, he said.

To help create demand for ethanol, Jindal said he is supporting the Fuel Choices for American Security Act of 2005, which sets the country toward a goal of getting 10 percent of its fuel from ethanol within 10 years.

Jindal also touted his legislative efforts toward hurricane relief and offshore energy revenue.

He is a co-sponsor of legislation that would give Louisiana 75 percent of the royalties from offshore energy exploration within 12 nautical miles of the state’s coast, and half the royalties beyond 12 miles. Currently, the state receives almost none of that money.

The new revenue stream, an estimated $9 billion over the first 10 years, would be dedicated to coastal restoration. Jindal stressed the importance of securing this recurring money. While Congress gave the state $540 million for restoration last year, he said, there’s no guarantee that would continue to once the memory of last year’s hurricanes starts to fade.

“This is a chance to rebuild our state, and we need to seize the opportunity,” Jindal said.

Jindal said the legislation has about 70 co-sponsors so far.

Jindal told the farmers that the outlook was good for about $4 billion in supplemental federal aid for farmers in hurricane-affected states, which includes about $120 million for Louisiana sugar farmers.

He said the aid was being negotiated in conference between the House and Senate, and urged the meeting’s attendees to contact people in other states to put pressure on their representatives to preserve that money.

Sugar growers who attended said they appreciated Jindal meeting with them, and said their industry’s diversification into energy production could be their salvation.

“This gives us another glimmer of hope,” after four bad crops, said Raceland sugarcane farmer Rodney Foret. “Energy is our only way out.”

Others agreed.

“If we stay dependant on foreign fuels, we’re at their mercy,” said Daniel Naquin of Daniel Naquin Farms.

Farmers said ethanol could be made from bagasse, which is basically the leftover pulp from sugar cane and normally has to be swept up or burned. Farmer Slat McCollum said being able to take the bagasse to a factory would solve the problem of how to dispose of it.
http://www.dailycomet.com/apps/pbcs.dll/article?AID=/20060411/NEWS/604110303/1013

[XShipRider]

$400M... shocking.:roll:

[annihilation]

There are three things in life:

1.)Things you can control

2.)Things you can influence

3.)Things you can NEITHER influence or control

I'd say work on #1 + #2

In time I guess, in time.

[annihilation]

http://www.123jump.com/economy-story/Crude-Oil-Inventories-Advance-Again/17222/
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/current/txt/wpsr.txt

Even Iran doesn't have the capacity to refine so it imports 40% of its gasoline.(http://www.newsday.com/news/opinion/ny-opisr144701407apr14,0,3252600.story?coll=ny-viewpoints-headlines)


So be it I was wrong. Thanks for pointing that out. About WV making profits off of coal. I have no problems with profits overall. If they can make money great, rather give it to them than some foreign countries. I would like them not to level the landscape in the process though.

[Flagg]

In time I guess, in time.

That's an important point....it's not going to just take overnight to fix...likely a couple of decades of occasional sharp financial pain for most.