Corporate Pig

Directly from XOM:

"His pension benefits are based on more than 40 years of service with the company and are calculated using the same pension formulas that apply to all other U.S. dollar - paid employees in the pension plans in which he participated."

"More detail and information regarding the compensation strategy of the company and the basis for the compensation of senior executives is available in the proxy statement. Specific information regarding the pension plan is available on pages 24 and 25."
 
I wonder how many options you get for blowing earnings in the strongest oil market in history? Give this guy the Ken Lay Leadership Award.


Oil shares fall after Exxon Mobil misses analysts' view

HOUSTON (MarketWatch) -- Oil and gas shares opened with a thud Thursday after industry standard Exxon Mobil Corp. missed analysts' earnings expectations by a dime. The Amex Oil Index ($XOI : amex oil index
-2.3%) dropped 3.8% too 214.38.
 
Quote from futures_shark:


Most small shareholders don't really pay attention because they figure the SEC is watching out for them. If it wasn't there people would look at the details themselves a little closer and be able to decide for themselves if they agree with a compensation plan or not.

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If it (SEC) wasnt there you'd have the kind of market manipulation not seen since right before the depression...when they pulled the rug from under the dow..
 
LOL. Steve, just to clue you in, XOM's tremendous profits are not derived from the retail level but rather from refining, ect.........
Quote from steveosborne:

My wife and I usually pump our gas at Exxon/Mobil stations with our rebate cards but that's going to change soon since we share the same disapproval. America is not in that great of a shape.

In case others here would also decide to exercise their consumer power, don't get the Shell card because you won't get the rebates they advertise. Why? They'll tell you that you didn't check the checkbox at the back of the form stipulating that you actually want the rebate card, even if the form you picked was for a card advertised as the rebate card.
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Everybody thought the price of oil would go up. Exxon would be stupid for not hedging. And don’t think they can predict, manipulate or control the oil commodity market. They are tiny compared to the entire global market. The real issue is that the savings from their oil hedge is not being passed down to the consumer. But they don’t have to pass it down and there is nothing illegal about it. Instead, they can use these profits for R&D and new exploration that helps America become independent from Muslim oil. If oil stays at $75 all next year, or falls, let’s see what their profits will be. There is risk involved, but the oil bull was obvious and they were not going to just sit there when they have to purchase oil to do business.
 
Through luck and stock splits, my Grandmother wound up with 18,000 shares of GE. Ironically she never bought the stock!! She owned some POS that GE acquired and she received 1000 shares of GE in the mid 1960's. When the stock soared during the Walsh years she couldn't have cared if they gave Jack a billion in bonuses. In her view he made her a millionaire, albeit a short lived one. Granted Walsh added more value to GE than any CEO can personally add to XOM. However the fact remains that large holders of a stock will demonstrate little jealousy over seemingly outlandish compensation if market performance warrants the outlay. A CEO who's able to pump up a companies earnings along with the stock price is certainly as valuable to shareholders as a hedge fund manager who receives 25% of profits just for buying the stock.
Quote from futures_shark:

Directly from XOM:

"His pension benefits are based on more than 40 years of service with the company and are calculated using the same pension formulas that apply to all other U.S. dollar - paid employees in the pension plans in which he participated."

"More detail and information regarding the compensation strategy of the company and the basis for the compensation of senior executives is available in the proxy statement. Specific information regarding the pension plan is available on pages 24 and 25."
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Quote from Pabst:

Through luck and stock splits, my Grandmother wound up with 18,000 shares of GE. Ironically she never bought the stock!! She owned some POS that GE acquired and she received 1000 shares of GE in the mid 1960's. When the stock soared during the Walsh years she couldn't have cared if they gave Jack a billion in bonuses. In her view he made her a millionaire, albeit a short lived one. Granted Walsh added more value to GE than any CEO can personally add to XOM. However the fact remains that large holders of a stock will demonstrate little jealousy over seemingly outlandish compensation if market performance warrants the outlay. A CEO who's able to pump up a companies earnings along with the stock price is certainly as valuable to shareholders as a hedge fund manager who receives 25% of profits just for buying the stock.
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This is exactly what I don't agree with. A fund manager is directly responsible for the gains or losses. A CEO, particularly a corporate politician as opposed to an entrepreneur, is just someone at the top of the organizational chart. It is very difficult to isolate his contributions to the bottom line. Certainly companies come up with a boatload of excuses for them when the results suck, and the options have to be repriced. But when the results are good, shareholders are supposed to be willing to just open the vault to them because of their brilliance. And anyway, the shareholders made some money so who the hell are they to complain?

Now we get a guy like Raymond whose company blew its earnings even though it had an incredible environment. We've just been treated to a load of nonsense about how uniquely valuable he was, and how that jsutified awarding him the GDP of a small country. Well, how much is he going to give back, because by the same logic he screwed up big time.
 
Quote from Pabst:

LOL. Steve, just to clue you in, XOM's tremendous profits are not derived from the retail level but rather from refining, ect.........
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Pabst,
Why was my reply to your post deleted? All I did is demonstrate with a chart from the Department of Energy that gasoline IS the major source of revenues for refineries, and did so without the kind of rudeness that you're so fond of.

At the very least, if you don't like my answer and want to delete it, make sure you also delete the post to which I was answering.
 
Quote from AAAintheBeltway:

I've always looked at these corporate hogs as the price we pay for our free enterprise system. Their compensation packages are indefensible, but in the overall scheme of things, not all that important. My view has changed.

There is a ripple effect through the entire system. Monkey see, monkey do. This comp package beocmes the benchmark for the next, and the one after that. Of course, those in control of the system are thrilled, as such theft legitimizes every other CEO's greed. There are numerous related effects, all of them noxious. Workers are demoralized and infuriated. Exec's are incentivized to cut corners and engage in shady accounting to "justify" huge payouts. FNM and Enron are only two examples. An economically illiterate public feels jsutified in supporting dubious political schemes, such as prcie controls, because of this obscene greed.

Clearly, corporate governance is broken. the institutional investors who control the votes to put a stop to this kind of theft of shareholder resources are too conflicted to do anything but rubberstamp it. They have lucrative pension business that the company might terminate, or they are worried about losing access, and frankly, no one gets ahead by being a boat rocker.

I'm afraid the only solution is for the SEC or congress to step in. Mandate an upper limit on compensation. If a CEO can't be sufficiently motivated to get out of bed in the morning by say, 5 mill a year, then find someone who will. Something tells me they're available, if not here, then in India. Let the CEO's reap the results of their superior leadership the way we do, by risking their own money to buy stock in their companies.
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i couldn't agree more. especially the last paragraph.

bravo! a well thought out response.
 
Steve I'm sorry about that. I didn't intentionally delete your post. Please repost that graph.

I also accidently deleted my reply back. What I was trying to say is that when someone buys gas at "Joes", the independent operator on the corner, they may just as easily be supporting an XOM refinery. Likewise the amount of profit that XOM garners from it's service stations is a relatively low % of their revenue.

And yes there was rudeness in your post. I think you implied I was a shill for corporate America. Funny considering I haven't been long any stock, twenty times in my life.
Quote from steveosborne:



Pabst,
Why was my reply to your post deleted? All I did is demonstrate with a chart from the Department of Energy that gasoline IS the major source of revenues for refineries, and did so without the kind of rudeness that you're so fond of.

At the very least, if you don't like my answer and want to delete it, make sure you also delete the post to which I was answering.
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