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Exxon awarded CEO total pay of $34.9 million in 2011

Exxon awarded CEO total pay of $34.9 million in 2011 thumbnail

Exxon Mobil Corp’s chief executive earned 20 percent more in 2011 than the year before, and the company said it saw no reason to change its pay practices, as had been urged by some investors.

Chief Executive Rex Tillerson received $34.9 million in total compensation, up from $29 million in 2010, Exxon said in a proxy statement filed with regulators on Thursday.

The CEO of U.S. rival Chevron Corp, John Watson, collected a total of $24.7 million in 2011, his second year in the job. That was a 52 percent increase from $16.3 million in 2010, according to Chevron’s proxy, also out on Thursday.

Tillerson’s pay package included stock awards valued at $17.9 million and bonus and salary totaling $6.8 million. Watson received $5.6 million in salary and non-equity incentives, and the rest in stock, options, pension and deferred compensation.

Exxon’s board of directors bases its compensation decisions on long-term financial targets, among other factors.

Last year, proxy firm ISS criticized Exxon’s compensation practices, and argued that the company’s shareholder returns did not justify executives’ pay packages. Returns, ISS said, were inflated by higher crude oil prices.

In this latest proxy statement, Exxon said that it had spoken with a number of shareholders about its compensation practices following a non-binding “say on pay” proposal that won approval with 67 percent of shareholder votes.

“We believe that applying a short-term, formula-based approach to ExxonMobil’s compensation program would undermine the uniquely long-term requirements of our proven business strategy,” the company said in the filing, with the U.S. Securities and Exchange Commission.

In this year’s proxy statement, Exxon used a chart to illustrate that its shareholder returns had outperformed those of its peers and the Standard & Poor’s 500 over a 20-year period.

Exxon said its conversations with shareholders included consideration of the use of formula-based pay tied to shorter-term metrics such as one- and three-year total shareholder returns, a practice that ISS urged the oil company to adopt.

Shareholder proposals on the proxy related to hydraulic fracturing, greenhouse gas emissions and splitting the job of chairman and chief executive.

The annual meetings of both Exxon and Chevron are scheduled for May 30.

Both companies will face votes on resolutions related to the oil and gas production practice of hydraulic fracturing. Similar resolutions last year won support from 28 percent of Exxon shareholders and 40 percent of Chevron’s shareholders.


3 Comments on "Exxon awarded CEO total pay of $34.9 million in 2011"

  1. BillT on Fri, 13th Apr 2012 6:22 am 

    Theft is no longer a crime if you are the 1%. But, if you are not, an ounce of weed can get you jail time. The ‘for profit’ prisons are full of the wrong people. These guys should be sharing a cell with mass murderers. They would feel right at home. Let half of the non-dangerous prisoners go and put 1 million of these guys in there for life. Then I wouldn’t mind paying to keep them there.

  2. DC on Fri, 13th Apr 2012 8:17 am 

    Yes, the outrageous compensation for fossil-fuel executives is always a sure-fire way to generate some short-term outrage. But so long as cars are kings, the criminal FF sydicate will keep rewarding its bosses like this. Between the US corporate military and fat obese North Americans compulsive need to drive and consume, is what allows these guys to skim so much fat off the top. Cars are Rex Tillersons cash-cow. If you want him to make a lot less, stop driveing that gas-burning trash-bin 20 miles so you save 3 dollars on a plastic dryer amerika! Scrap those tanks that get 3 gallons to the mile, reduce your corporate mercenary force to local, lighy armed miltias again. Stop subsidizing car-sprawl and above all, STOP the constant bail-outs of the auto-airline industries.

    If that were happen, Rex would still make a good liveing to be sure, but no-where near the 30-100million(YMMV) that these guys do now. Or, you can keep things exactly as they are and keep complaining about over-comped 1%pers for next couple decades.

  3. BillT on Fri, 13th Apr 2012 11:30 am 

    Since I do not own a car any longer and have not for 4 years, I am not supporting the 1%. I do not have enough taxable income to even pay taxes, so I don’t ‘bail out’ anything. What the sheeple don’t seem to realize is that they/you do not have any say in who is elected and what happens in government. The 1% make all the choices and you just vote for your particular religion. I’m glad I no longer reside in the 50 but I am not looking forward to the groping and interrogation and free xrays I will get from the TSA goons when I come back there to visit family this summer.

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