His retirement package is actually $400 Million.
Exxon is giving Lee Raymond one of the most generous retirement packages in history, nearly $400 million, including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes.
Last November, when he was still chairman of Exxon, Raymond told Congress that gas prices were high because of global supply and demand.
"We're all in this together, everywhere in the world," he testified.
My opinion in a nutshell is that I don't have a problem with the concept behind this but I do have trouble with the amounts.
Exxon is a widely held public company so when it makes a $36 billion dollar profit, that is spread to almost everybody that holds shares and would probably include almost everybody that owns any mutual funds.
Raymond's compensation is tied to company performance so when the company does well (and all of us shareholders) so does he. And if the company doesn't do well neither does he (comparitivly speaking).
But my problem is why does it have to get to these absurd numbers? How much wealth is too much? Forgetting his bonus and retirement package, Raymond made $51 million in salary last year. The story says that this is five times as much as the CEO of Chevron.
I guess I shouldn't begrudge him his money but I see him differently than entrepreneurs. If you get ridiculously wealthy like Gates or Allen by building your own company good for you. These guys made something and had no guarantees of success or even of a minimum wage. I see Raymond as an employee. Sure he was a hard worker and worked his way up through the ranks and contributed to the success of the company but he still works for all of us since we are the shareholders. Is he five times better than the CEO of Chevron? Probably not. Are there dozens of people who could have done the same job? Probably. So I'm not that thrilled by the sums that are being paid out here.
It's not Raymond's fault. He signed an incentive laden contract when he took the job. The people who approved the contract knew that he would only get this kind of coin if the company made a $36 B profit - so it would be a win/win situation. It was fair - still doesn't mean that I have to like it. It didn't have to be that big of a contract, but that's just sour grapes on my part.