Exxon Mobil directors say fill er up…
Gas prices may be much lower than they were during the summer of 2008, when they were approaching $5 a gallon in many parts of the country. But we couldn’t help but think about gas prices as we dipped into the 10-K that Exxon Mobil (XOM) filed on Friday.
In the filing, which was significantly longer than the 2008 10-K, the company disclosed that total compensation for one of its directors was over $600,000 in 2009. Eight other directors collected more than $300,000 and two received a little less than $250K. Kenneth Frazier, Merck’s Executive Vice President of Global Human Health and a new bee to Exxon’s Board of Directors last year, made the most: $614,283, though to be fair, the bulk of that was in stock awards as opposed to cash compensation. While the other 10 directors took home $201,263 in stock awards, Frazier’s award was valued at $554,280. The footnotes reveal Frazier received a one-time grant of 8,000 restricted shares upon being first elected to the Board in May 2009. The valuation of this award is based on a market price of $69.29 on the date of grant, which is actually higher than Exxon stock is currently trading at.
Our find on Exxon’s director pay was just one of a few gems buried in last weeks’ filings. Other companies that fueled up their director’s pay in 2009 were Baker Hughes (BHI), Brocade Communications (BRCD) and Arkansas Best (ABFS). Directors at Brocade and Baker Hughes received more than $200K, while Robert Young of Arkansas Best pocketed $280K. Young’s perquisite value included personal use of the company’s aircraft and a hunting lodge, an administrative assistant, a nominal gift related to business activities and a Christmas gift from the Company.
This post was written by footnoted intern Kristen Scholer, who is a junior at Northwestern University.
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Posted in Tags: 10Ks, directors, Friday filings |
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March 2nd, 2010 at 2:23 pm
As a shareholder in XOM, I find those stock grants to be very lavish. I would never approve that high a compensation. Especially since the div yield for XOM is puny. Good research. Small lot shareholders have no input on these generous the pay packages for senior execs(elite). You can vote “no” for members of the compensation committee members and rant to Investor Relations, but really how effective are these measures. You could attend the Annual meeting and maybe get a chance to voice your concerns, but it usually is NOT well received. Management claims these high pay and generous benefits are needed to attract and retain valuable employees. So why give the new Board member a grant of 8,000 shares, he doesn’t even know the oil & gas business??? Big business like Big government abuse their powers.
March 2nd, 2010 at 3:19 pm
Exxon was a good safe haven stock as it sat on its cash in the crash. Now, however, as the company burns through cash to buy assets will XOM keep its lofty position in the next downturn? And it certainaly hasn’t matched the S&P rise since March. I’d like to see this stock outperform the market in good times as well as bad before the Directors lavish themselves with “compensation.” Get the share price back in the low 80s and then come and see how we feel. There are a lot of downsides to owning this amoral company’s shares – one of them shouldn’t be over compensation to the super wealthy.
March 2nd, 2010 at 3:37 pm
Hi,
Unfortunately, the only option a small investor has if he doesn’t like management’s policies is to sell his stock. In my view, there are no good companies. Management people are very self serving and are not to be believed under any circumstances. They are primarily cheer leaders for their own self interest.
There are only stocks that make you money and stocks that lose you money. The only thing that has ever made me money is being on the right side of the net order flow.
Edward
March 5th, 2010 at 4:14 pm
Exxon is an excellent company and the directors/management deserve every cent plus stock awarded to them..Those who oppose will be disposed of in our proxy votes in favor of the salaries and stock plus a say on pay is dumb as congress………………