Exxon Mobil Corporation (NYSE: XOM) is out with its 2012 bonuses and its 2013 pay packages. Chairman and CEO Rex Tillerson is getting a 6% raise as he will make $2.717 million in 2013. Stephen Pryor, VP and President of ExxonMobil Chemical Company will get a salary of $1.04 million in 2013. The bonus pool was approved on November 28. Approximately 50% of the bonus will be paid to the executive in cash by year-end and the remaining 50% will be paid on a delayed basis through the use of earnings bonus units. A ceiling of 11 million shares would be available under the plan as follows:
- Rex Tillerson: $4,587,000 total, with up to 225,000 shares
- Donald Humphreys: $3,144,000 total, with up to 124,000 shares; Keep in mind that Humphreys has already announced his retirement from Exxon Mobil as of February.
- Mark Albers: $2,345,000 total, with up to 90,800 shares
- Michael Dolan: $2,527,000 total, with up to 98,600 shares
- Stephen Pryor: $2,001,000 total, with up to 77,000 shares
Exxon shares have returned 6% year to date if you include the payment of dividends. At $87.50, the 52-week trading range is $77.13 to $93.67.
Salaries and high pay often come under fire. The problem is one of relevance. The bonuses are only half in cash, so the pay packages might not be as large as they sound. Does a salary of $2.7 million million sound ridiculous for running the world's top oil company? That is probably only a day's pay for the Kardashian family's cash machine.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Corporate Governance, Oil & Gas Tagged: featured, XOM