Here is part of an article that I found on MSN. So who's to "blame" for the higher gas prices?
Did oil execs luck into record pay?
Oil stocks and oil company profits are soaring, and their CEOs' compensation is hitting the stratosphere -- even as the companies claim they're not to blame for high oil prices.
By Michael Brush
Many Americans are struggling to make ends meet because of $75 and $100 trips to the gas station.
Executives at oil companies are getting rich because of those same trips. And what do those CEOs have to say for themselves?
"It's not our fault" -- or something along those lines.
Big Oil CEOs are pulling down record pay even as their companies tacitly concede they didn't do anything extra to earn it. When anyone asks why gasoline costs $4.50 a gallon, they cite factors beyond their control, such as speculators or global demand.
That doesn't stop these CEOs from cashing in. Their pay hinges largely on two things: profit and stock price. It's no surprise that an oil company's profit would rise with the price of oil, as would its stock price. The CEO doesn't have to be a genius. A pulse will suffice.
"They are getting a gift for being in the right place and being lucky," said Mark Van Clieaf of MVC Associates International, a consulting company that advises boards on pay for performance.
And don't buy the pleas of innocence. These CEOs negotiated pay packages that compensate them with millions of dollars during normal years -- and during times like now, stock awards propel their pay into the stratosphere.
Chief executives at big oil companies such as ExxonMobil (XOM, news, msgs), Chevron (CVX, news, msgs) and ConocoPhillips (COP, news, msgs) earned from $15 million to $21.7 million last year, well above the $9.9 million median for CEOs at S&P 500 ($INX) companies, according to The Corporate Library. Plus, these energy company CEOs are now sitting on hundreds of millions of dollars worth of incentive stock and options grants.
For the full article go to: http://articles.moneycentral.msn.com/Investing/CompanyFocus/DidOilExecsLuckIntoRecordPay.aspx
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1 comment:
I wish I was an oil exec. I have no problem with people making money, but this is rediculous.
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