Welcome to the MacNN Forums.

NYCFarmboy · Apr 14, 2006, 06:34 PM

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

Lee Raymond's retirement package -- worth nearly $400 million -- is one of the largest in history. (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.

..............

Why I posted this: I found this article interesting and was wondering what other's comments would be on it.

davesimondotcom · Apr 14, 2006, 06:40 PM

He should be able to afford some fuel then...

aadfadsfa30 · Apr 14, 2006, 06:48 PM

Well the poor guy needs it with the price of gas and all.

The guy looks like he'll be dead in a few years anyway. Can't take it with him.

itai195 · Apr 14, 2006, 07:19 PM

I don't even care about gas prices, nobody should get a $400 million retirement package.

Dr Reducto · Apr 14, 2006, 07:23 PM

How is his retirement package related to soaring gas prices?

We live in a capitalist system, and thus the only people that should be concerned are Exxon shareholders.

abe · Apr 14, 2006, 07:37 PM

Originally Posted by Dr Reducto

How is his retirement package related to soaring gas prices?

We live in a capitalist system, and thus the only people that should be concerned are Exxon shareholders.

NYCFarmboy · Apr 14, 2006, 10:37 PM

Originally Posted by Dr Reducto

How is his retirement package related to soaring gas prices?

We live in a capitalist system, and thus the only people that should be concerned are Exxon shareholders.

well I for one will be bypassing any Exxon/Mobil gas stations.

400,000,000.00 is a breathtakingly vulger rape of the shareholders of Exxon.

This is not capitalism. This is theft.

dcmacdaddy · Apr 14, 2006, 11:19 PM

Originally Posted by Dr Reducto

How is his retirement package related to soaring gas prices?

We live in a capitalist system, and thus the only people that should be concerned are Exxon shareholders.

True, wuite true. Some of Exxon's shareholders are concerned.

"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"

I'd say $400 million could bump up the dividence price for the shareholders rather nicely. How many publicly traded shares of Exxon stock are there? If there is 400 million shares that is a $1/share boost in dividend payments over the years.

abe · Apr 15, 2006, 04:40 AM

Originally Posted by NYCFarmboy

well I for one will be bypassing any Exxon/Mobil gas stations.

400,000,000.00 is a breathtakingly vulger rape of the shareholders of Exxon.

This is not capitalism. This is theft.

And you sound like a socialist making statements like that. And I know you aren't.

Before you decide to swear off Exxon/Mobil you should be warned that none of the oil companies are much different.

Bonuses were up across the board, from those at big integrated energy companies to those at tiny oil services businesses. And some chief executives saw their pay rise substantially from 2004, another banner year for energy industry profits.

Ray R. Irani, the chief executive of Occidental Petroleum, received about $63 million in total compensation last year, an increase of more than 50 percent from the year earlier. Over the last three years, Mr. Irani has reaped more than $135 million, mostly in options and restricted stock.

http://www.nytimes.com/2006/04/09/bu...=1&oref=slogin

It's like in Major League Baseball.

If you have the $$ to reward the performers who will get you what you want you have to pay them or they'll go elsewhere.

If stockholder resolutions place a ceiling on compensation the top guy will just go across the street and make your competitor rich. Then, after declining performance for a few years you'll see the resolution overturned. And all it cost you was a few hundred million a year in profits for maybe ten years?

FeLiZeCaT · Apr 15, 2006, 11:35 AM

Originally Posted by NYCFarmboy

well I for one will be bypassing any Exxon/Mobil gas stations.

400,000,000.00 is a breathtakingly vulger rape of the shareholders of Exxon.

This is not capitalism. This is theft.

Nope. It is healthy capitalism rewarding the worthy who worked very hard to make the company profitable.

Accept the system for what it is or become a communist. Period.

You cannot complain for the system benefiting others if you fail in making it profitable for you.

abe · Apr 15, 2006, 03:25 PM

Originally Posted by FeLiZeCaT

Nope. It is healthy capitalism rewarding the worthy who worked very hard to make the company profitable.

Accept the system for what it is or become a communist. Period.

You cannot complain for the system benefiting others if you fail in making it profitable for you.

One day I might decide to become a multi-billionaire and I prefer a system which allows me to do so.

If it's a game, then I want the rules to encourage the player. Not the house.

ReggieX · Apr 18, 2006, 02:57 PM

Originally Posted by Dr Reducto

How is his retirement package related to soaring gas prices?

Higher gas prices have yielded higher profits, leading to a larger retirement package. Or can't you follow the very simple logic?

Monique · Apr 18, 2006, 03:07 PM

So, I guess he got all this money because some people wanted to thank him for trying to destroy the Alaskan environment. After, his company was intrumental into hiring a drunk as a captain and having old boats.

abe · Apr 18, 2006, 03:39 PM

Originally Posted by Monique

So, I guess he got all this money because some people wanted to thank him for trying to destroy the Alaskan environment. After, his company was intrumental into hiring a drunk as a captain and having old boats.

Yes.

Dork. · Apr 18, 2006, 04:10 PM

Originally Posted by dcmacdaddy

I'd say $400 million could bump up the dividence price for the shareholders rather nicely. How many publicly traded shares of Exxon stock are there? If there is 400 million shares that is a $1/share boost in dividend payments over the years.

There are somewhere north of 6 billion shares of XOM outstanding. This retirement package costs XOM shareholders something like $.07/share. They'd probably gladly pay it, given the returns that they have recieved.

Lots of big, big numbers floating around here. Is any one person worth that much?

abe · Apr 18, 2006, 04:51 PM

Originally Posted by Dork.

There are somewhere north of 6 billion shares of XOM outstanding. This retirement package costs XOM shareholders something like $.07/share. They'd probably gladly pay it, given the returns that they have recieved.

Lots of big, big numbers floating around here. Is any one person worth that much?

You already answered your own question.

They'd probably gladly pay it, given the returns that they have recieved.

And as long as we have a capitalist system, that's what determines 'worth' in that context.

If you are talking about ethics or morality or religion or philosophy or alternate governmental or economic systems then that's a whooooooole 'nother story.

voodoo · Apr 18, 2006, 05:55 PM

Well done Mr. Raymond.

I'm sure a retarded monkey couldn't have done quite as good a job as you. The risks you took to make Exxon profitable, the creative ideas you had, the fantastic leadership abilities you displayed and so much more have distinguished you in such a way that offering you anything less than $400 million to have during the sunset of your life is just the least the company can do.

It's not like Exxon could have earned all that money last year without you.

... or perhaps this is the price for your silence

V

Moderator · Apr 18, 2006, 06:00 PM

Originally Posted by Dr Reducto

How is his retirement package related to soaring gas prices?

We live in a capitalist system, and thus the only people that should be concerned are Exxon shareholders.

You're wrong. If this were a capitalist system then "Discount Gas" would be able to come along and undercut the oil companies that bend us over and rape us every day.

There is a reason that there is no oil version of Jet Blue who can come in and offer more for less...have you asked yourself why that hasn't happened? It's because this business is rigged...its controlled by a cartel and there is nothing "capitalist" about that.

abe · Apr 18, 2006, 06:20 PM

Originally Posted by voodoo

Well done Mr. Raymond.

I'm sure a retarded monkey couldn't have done quite as good a job as you. The risks you took to make Exxon profitable, the creative ideas you had, the fantastic leadership abilities you displayed and so much more have distinguished you in such a way that offering you anything less than $400 million to have during the sunset of your life is just the least the company can do.

It's not like Exxon could have earned all that money last year without you.

... or perhaps this is the price for your silence

V

How much would it cost to buy yours?

abe · Apr 18, 2006, 06:23 PM

Originally Posted by Moderator

You're wrong. If this were a capitalist system then "Discount Gas" would be able to come along and undercut the oil companies that bend us over and rape us every day.

There is a reason that there is no oil version of Jet Blue who can come in and offer more for less...have you asked yourself why that hasn't happened? It's because this business is rigged...its controlled by a cartel and there is nothing "capitalist" about that.

Where have you gone, Teddy Roosevelt? Our nation turns it's lonely eyes to you, woo woo woooh...

FeLiZeCaT · Apr 18, 2006, 06:24 PM

Originally Posted by abe

How much would it cost to buy yours?

Actually, if I may offer myself for this service, I am willing to shut up for the rest of my life for the small price (but so advantageous!) of 1 billion, or more.

Can we post that on ebay?

maxx9photo · Apr 18, 2006, 06:28 PM

The new oil prices has set another record for $71.60 per barrel, another big profit year for exxonmobil?

FeLiZeCaT · Apr 18, 2006, 06:29 PM

Originally Posted by maxx9photo

The new oil prices has set another record for $71.60 per barrel, another big profit year for exxonmobil?

I think retirement will be great this year at Exxon!

abe · Apr 18, 2006, 06:34 PM

Originally Posted by FeLiZeCaT

Actually, if I may offer myself for this service, I am willing to shut up for the rest of my life for the small price (but so advantageous!) of 1 billion, or more.

Can we post that on ebay?

First lesson in capitalism.

Find something the consumer wants.

I'm sure you irritate plenty of folks but not enough that they'd pay for you to retire. However, I could be wrong.

FeLiZeCaT · Apr 18, 2006, 06:39 PM

Originally Posted by abe

First lesson in capitalism.

Find something the consumer wants.

I'm sure you irritate plenty of folks but not enough that they'd pay for you to retire. However, I could be wrong.

You are sooooooo wrong.

::evil::

voodoo · Apr 18, 2006, 07:13 PM

Originally Posted by abe

How much would it cost to buy yours?

Perhaps you shouldn't be concerning yourself with that?

V

abe · Apr 18, 2006, 07:16 PM

Originally Posted by FeLiZeCaT

You are sooooooo wrong.

::evil::

Ok. Here's my 2¢

Why don't you and Voodoo BOTH go away?

voodoo · Apr 18, 2006, 07:18 PM

Originally Posted by abe

Ok. Here's my 2¢

Why don't you and Voodoo BOTH go away?

Cramping your style? And we should care, why exactly?

PS: 2¢ aren't going to buy you anyone's silence. Elementary capitalism aberdeenwriter.

V

FeLiZeCaT · Apr 18, 2006, 07:20 PM

Like he said.

:

:

NYCFarmboy · Apr 18, 2006, 08:04 PM

Originally Posted by Moderator

You're wrong. If this were a capitalist system then "Discount Gas" would be able to come along and undercut the oil companies that bend us over and rape us every day.

There is a reason that there is no oil version of Jet Blue who can come in and offer more for less...have you asked yourself why that hasn't happened? It's because this business is rigged...its controlled by a cartel and there is nothing "capitalist" about that.

AMEN

*puzzled to be agreeing with moderator though*

FeLiZeCaT · Apr 18, 2006, 09:04 PM

Originally Posted by Moderator

You're wrong. If this were a capitalist system then "Discount Gas" would be able to come along and undercut the oil companies that bend us over and rape us every day.

There is a reason that there is no oil version of Jet Blue who can come in and offer more for less...have you asked yourself why that hasn't happened? It's because this business is rigged...its controlled by a cartel and there is nothing "capitalist" about that.

Sounds like a tree-hugging envious whiner.

You don't like their product, buy elsewhere!

NYCFarmboy · Apr 18, 2006, 09:07 PM

I saw tonight on Fox News where Bill O'Reilly has announced a boycott of Exxon-Mobil gas stations as well.

strange bedfellows on this one.

Monique · Apr 19, 2006, 10:40 AM

Voodoo might be right about the silence of that ex-ceo; he probably knows lots of damaging things like the fact the oil companies do not need to raise prices. It is always about profits.

Taliesin · Apr 19, 2006, 10:52 AM

Originally Posted by abe

Ok. Here's my 2¢

Why don't you and Voodoo BOTH go away?

LOL, ROFL!!!

Try this, abe: Stay away from this forum, and you will find that both of them won't disturb your ways anymore.

Taliesin

SpaceMonkey · Apr 19, 2006, 11:03 AM

As Jon Stewart pointed out, the worst part is: he even gets dental insurance.

And he has a Honus Wagner card in his jowels.

Moderator · Apr 19, 2006, 01:53 PM

Originally Posted by FeLiZeCaT

You don't like their product, buy elsewhere!

I sold my car..don't need it or want it.

tie · Apr 19, 2006, 02:13 PM

Originally Posted by Dork.

Lots of big, big numbers floating around here. Is any one person worth that much?

Steve Jobs is worth almost twice as much, and compare Apple to Exxon...

itai195 · Apr 19, 2006, 05:07 PM

The larger issue is simply that executive compensation has gotten out of hand. This isn't really news to anyone, and various excuses including 'record profits' are often used to justify it. This isn't a positive outcome of capitalism, it's a perversion of it -- executive compensation isn't determined by free market rates, it's determined by a rather exclusive group of individuals who act in their best interests rather than shareholders'. They scratch each other's backs and the rest of us get to pay for it.

By the way, if you own pretty much any large-cap mutual fund, you are XOM shareholder.

FeLiZeCaT · Apr 19, 2006, 05:30 PM

Originally Posted by Moderator

I sold my car..don't need it or want it.

Welcome to the club! I have been carless for 12 years now.

Originally Posted by ital95

The larger issue is simply that executive compensation has gotten out of hand. This isn't really news to anyone, and various excuses including 'record profits' are often used to justify it. This isn't a positive outcome of capitalism, it's a perversion of it -- executive compensation isn't determined by free market rates, it's determined by a rather exclusive group of individuals who act in their best interests rather than shareholders'. They scratch each other's backs and the rest of us get to pay for it.

Should we be expecting some kind of investigation from the appropriate watchdogs to clean that act up?

itai195 · Apr 19, 2006, 05:43 PM

They aren't doing anything illegal, and this subject has already been beaten to death in the media, so I don't think an investigation is necessary

I just object to calling these compensation packages healthy capitalism.

FeLiZeCaT · Apr 19, 2006, 06:02 PM

Originally Posted by itai195

They aren't doing anything illegal, and this subject has already been beaten to death in the media, so I don't think an investigation is necessary

I just object to calling these compensation packages healthy capitalism.

I never thought capitalism could be unhealthy.

abe · Apr 19, 2006, 10:16 PM

Originally Posted by Taliesin

LOL, ROFL!!!

Try this, abe: Stay away from this forum, and you will find that both of them won't disturb your ways anymore.

Taliesin

If I stayed away from this forum for too long the Earth would spin off it's axis! You wouldn't want that, would you?

abe · Apr 19, 2006, 10:21 PM

Originally Posted by FeLiZeCaT

Welcome to the club! I have been carless for 12 years now.

Some posters have been 'shiftless' for a longer time than that!

FeLiZeCaT · Apr 19, 2006, 10:50 PM

Originally Posted by abe

If I stayed away from this forum for too long the Earth would spin off it's axis! You wouldn't want that, would you?

Actually, the Earth has been spinning off it's axis for the longest time. Sorry!

abe · Apr 20, 2006, 03:27 AM

Originally Posted by FeLiZeCaT

Actually, the Earth has been spinning off it's axis for the longest time. Sorry!

Well, see? There you are!

Moderator · Apr 20, 2006, 09:31 AM

abe you still haven't explained to me why, if this is truly capitalism at work, there are no discount gas stations that can undercut the competition. Every other industry has them..why not here.

If Exonn is making $40 Billion a year in pure profit...that should leave a lot of room for someone to undercut them and still make shirtloads of money.

So please, tell my why this isn't happening....

Tuoder · Apr 20, 2006, 02:08 PM

Originally Posted by Moderator

abe you still haven't explained to me why, if this is truly capitalism at work, there are no discount gas stations that can undercut the competition. Every other industry has them..why not here.

If Exonn is making $40 Billion a year in pure profit...that should leave a lot of room for someone to undercut them and still make shirtloads of money.

So please, tell my why this isn't happening....

I'm thinking a vertically-integrated supply chain is the reason. In order to compete with Exxon-Mobil, you would need everything from the drill to the pump. There are discount gas stations everywhere that charge like 2 cents less per gallon. Ours is called Witham's Sav-a-Stop. Gas stations have very small profit margins. They make their cash on potato chips and cigarettes.