Ok, let’s put this whole pandemic thing in perspective. It all came to a head around the middle/end of March. EM heads have decided in a short 3 1/2 months that they need to cut the matching because the company will not withstand if it doesn’t? Really....In that short bit of time. It seems like it is something that they have been wanting to do for a long time so their pockets can remain fat full. So with this decision they are showing every single employee that they don’t care about any of the promises they made to THEIR EMPLOYEES in their contract/paperwork/documentation when they were hired. Yet, had the same employee quit or do something that was in/against their contract, they would be fired, sued or who knows what actions EM would take against them. What has any president of the companies come out and said what they have given up to give back to the company so it can have some stability.....NOTHING....NOT ONE WORD on anything that they have given up. Do you thinK Darren Woods cares about not getting his money matched? HECH NO....He makes over 15 MILLION DOLLARS a YEAR (and was given a 25% pay raise last year) so you know Liam makes even more but I have not looked up the numbers so I don’t know and not speaking on that but it doesn’t even matter at this point with this decision they have made. OPEN YOUR EYES PEOPLE. Now....Liam is disappointed that the media leaked the information to the public before he announced it to the employees. No, LIAM - YOU SHOULD BE SORRY, that you didn’t inform your employees before you sent some memorandum or what ever to the media. But nope, nothing. Just more of what all the employees need to do to keep saving money while they keep getting their bonuses and stock options no matter how much money they keep claiming the company loses in a quarter, they are still getting and taking theirs. Just like the government. The government is shutting everyone down that they want and the American businesses are the ones losing, going bankrupt but the Senate and Government officials are still getting paid. Not losing one dime. This is the same for the big wigs at EM. People, open your eyes. They are showing you that THEIR WORD is worth NOTHING. They don’t care about their employees.
18 replies (most recent on top)
If it makes you feel better. DW was awarded 180k restricted shares and 599k shares since 2016. The value of those share has dropped over $30/sh (20 million). The market quotes he made $15 million in 2019 but that was with stock at $70/sh. His pay at today's stock price is only about 10 million, not 15 million. He has taken a 30% cut, plus his bonus will be significantly lower. Shareholders have taken a cut also. Be clear we shareholders want cost reduction and work force reduction and DW and senior management are paid to execute this work force reduction. Exxonmobil will be smaller but more profitable in a couple years. Consistent profitability is the only thing that guarantees job security. No one predicted $40/B oil or COVID. Management is reacting to a unforecasted business disruption.
I think the commenter is trying to say reduce the div yield from 8% to 7%. This would save about 1.8 billion per yer. The problem is we have excess number of employees cutting the dividend does not cure this. Plus shareholders have already taken a 50% cut in the stock price. The efforts need to be on OPEX and CAPEX and investment efficiency and org stucture. There are clearly TOO MANY employees and size of workforce needs to be dramatically reduced. The pain will be to be on above market salary compensation and low performing employees/managers plus structural inefficiency and low performing assets (divestment). More disciplined investment in the future is required. Cutting the 7% indicates that total compensation is too high right now or we can cut 15% not 8%. The match saves about $1 billion per year. Next year the match will cme back but future salaries and promotions will come slower. Pick your poison
1% dividend decrease: 8% [$.087/share per quarter] to 7% [$0.77/share per quarter] based on Stock price of $44/share) = $1B decrease for the full year assuming 4.23B outstanding shares
or
1% of total dividend payment decrease: Total payment of $14B would be reduced by $140M or effectively decrease to dividend from 8% to slightly less than 8%...using same assumptions above
Math is hard.
There is not 23B common shares outstanding jack a–.
Can anyone on this form do math? 1% of $0.87 is not $0.11.
The most intelligent and respectful people I worked with at Exxon were PhD’s and still smart enough to know they don’t know everything.
They probably meant 1 percentage point cut to the dividend, or $0.11 a share.
- 23B shares outstanding * 1.0% / 8.09% * $0.87/share = $460M
And all the up votes for 1% cut = billions. You all are id–ts.
Take your engineering hat off for 5 minutes and think like an accountant. Zero $ generated from operations in 2Q. There’s not enough borrowed money to cover the 3Q and 4Q dividend and invest; and that has been cut by 30%. This is a quick cash solution that can be implemented with the push of a button. It could be a means to create a Cash neutral severance plan. Most employees should stop worrying about the 7% “suspension” and start worrying about the balance sheet. That 7% will be chump change compared to your entire salary. Wake up.
And that’s exactly what’s wrong with Exxon, overly confident arrogant people who are wrong over and over, think others are stupid and even call them “ stupid” publicly yet they are the ones who can’t do simple math... or listen to others. The $38 million for the 1% dividend cut is quarterly vs the $500 mil for 401k is yearly for those who want to continue doing this math :)
To the previous poster, 1 percent of a billion is 10 million so you are off by 10. Your answer should be $38 million...
@rff can you do math? There is 4.3 billion shares outstanding. At $0.87 per share, that amounts to $3.8 billion a qtr. A 1% reduction of that is only 3.8 million.
Just like many people in exxon, too much sh– being pulled out of your a–. All the up votes indicate the stupid people that can't even understand / verify.
The company was losing money before covid hit. Darren's big bets were duds - hedge against climate change demand collapse with ... polyethylene plastic bags - (cause that's what the steam crackers are for) As most countries are banning single use plastics? How clueless are you? How far removed from reality? Abysmal arrogance and sycophant surrounded cluelessness
@fye+16kDi0Rz And a 1% cut to the dividend saves nearly $2 billion.
Quit your b–ching. The 7% cut by employees amounts to ~$500 million/yr in savings. Woods compensation is peanuts compared to that.
I would say we weren’t all that special to the company before 2020. But News like this is typically coordinated for a certain release timeframe so everybody hears at the same time and HR is geared up for response. Wouldn’t be right for managers If some group to jump the gun. As far as greed...not sure. We don’t overpay our taxes even if country is in debt or give it all to charity so maybe we’re all a bit greedy. We all have more than some and less than others. At this point it’s more about the insecurity of what job cuts are coming - we should all be double checking our backup plans.
Filthy, corrupt, and dishonest USW won’t put a freeze on dues either.