Why do we not benchmark against companies out executives actually leave to go work for? I haven’t seen many leave for Ford, GM, Verizon, AT&T, Johnson & Johnson, Boeing, RTC Corp, Proctor & Gamble, IBm, Pfizer, or GE Aerospace. Chevron is the only one that makes any sense. Why not BP, Woodside, Hess, etc which are companies I know executives have left ExxonMobil for.
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Guess who decides who the executives get benchmarked against? Thats right, it’s the executives … or the board, and the board is comprised of other executives who don’t want to set a precedent of accountability, because OUR execs are on their board. Incestuous.
We all know they don’t have much control over stock price, but glad they are trying to sc--w us with the things they can control
I mean it’s a pretty cool deal for them… just su-ks that reducing size and benefits of 58,000 employees is a “performance metric” they set themselves (footnote 1), which they use during self-evaluations (footnote 2) to justify their obscene pay packages (footnote 3).
There are many ways to deliver industry leading earnings… like growing, for example… and cuts are done if that fails. These folks just skipped to rewarding themselves for ki-ling you off.
Proxy statement: pdf is on website…
Footnote 1. Pg 29 (of pdf). Board and Committee Self-Evaluations - Each year, the Board and each of the Board committees conduct a comprehensive evaluation of their performance and effectiveness…
Footnote 2. Pg 217 (of pdf) Structural cost savings - highlighted as one of their performance dimensions (pg 63 of pdf)…clearly states this refers to “workforce reductions.” They had to spell it out because their performance metric is a semi-blackbox of nonsensical numbers… nice.
Footnote 3. Pg 72 (of pdf) nothing to see here, just another compensation committee made up of themselves… that decides to pay themselves $15-30M per year.
Not really news for anyone paying attention…
I don’t buy for a minute any of the executive compensation BS. The number of shares is so massive. The dividend payments alone are more than you will ever make.
XOM board benchmarks against other companies outside oil industry. Read the executive compensation document filed with SEC. This is PUIBLIC INFO. XOM has the longest vesting period for senior executives in the industry, because it takes many years for xom strategy put in place today to show up in financial results. As a result XOM cash realized to relatively low. XOM publishes cash value realized and the mark to market value of the award (Bonus + RSU) at time of award. These SEC docments show alot, but XOM makes a point of "Realized compensation" vs Mark to market compensation