April 13, 2006
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DOW JONES
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Reprints tool at the bottom of any article or visit:http://www.djreprints.com/. • See a sample reprint in PDF format. • Order a reprint of this article now. Exxon Discloses Raymond's Pay By JEFFREY
BALL
April 13, 2006; Page B7 Exxon Mobil Corp. rode soaring oil prices last year to become the most profitable company in history while its retiring chief executive, Lee Raymond, reaped a total compensation package of $69.7 million, mostly through restricted stock awards and exercising options. The heads of most major oil companies got big pay increases last year. But, as in prior years, the Exxon chief's pay package was substantially higher than that of his counterparts at several other oil firms. Mr. Raymond's pay package amounted to $190,915 a day. Exxon's disclosure of Mr. Raymond's pay in the company's annual proxy filing yesterday is likely to intensify the political heat on major oil companies. Exxon earned a record profit last year of $36 billion, a fact critics have called excessive but that Exxon says results from market prices and prudent management. Exxon's stock has also been a strong performer, nearly doubling since the beginning of 2003, and yesterday traded at $61.46, off 54 cents, in 4 p.m. New York Stock Exchange composite trading. Mr. Raymond's 2005 pay package included $4 million in base salary, up 11% from 2004, and a 25% bigger bonus, to $4.9 million, according to the Exxon's proxy. Mr. Raymond was awarded restricted stock valued at $32.1 million, compared with an award in 2004 valued at $28 million. The amount from long-term incentive-plan payouts rose to $7.5 million from $2.2 million. The package also includes $21.2 million in value realized from exercising stock options. Exxon stopped awarding stock options in 2001. By comparison, last year Chevron Corp. Chairman D.J. O'Reilly received a salary of $1.6 million, a $3.5 million bonus and $3.6 million in long-term compensation, according to that company's filing. He didn't exercise stock options. Rex Tillerson, who succeeded Mr. Raymond as Exxon's chairman and chief executive officer in January after Mr. Raymond retired, earned a pay package that included $1.2 million in base salary, a $1.3 million bonus, $8.8 million in restricted stock and long-term payouts totaling $1.7 million. He also exercised options that earned $2.4 million in value realized. Exxon faces a handful of shareholder resolutions this year that criticize the company's level of executive pay and seek to rein it in. The company has recommended that shareholders reject those resolutions. The compensation committee of Exxon's board of directors "believes Mr. Raymond's total compensation was appropriately positioned relative to CEOs of U.S.-based integrated oil companies and other major U.S.-based corporations, particularly in view of the long-term performance of the company and the substantial experience and expertise that Mr. Raymond possesses," the proxy said. Write to Jeffrey Ball at jeffrey.ball@wsj.com1
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