Executive Compensation – How Much to Too Much
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I must admit, I find the $400 million payday a little overwhelming. However, I am in no position to comment as to whether this is excessive or not. The company did earn a profit of $36 billion last year – billion, not million – in profit. I think the real comparison would come from what all the other people within the company received – was it way out of whack or was it relatively in line. Unfortunately I have been unable to uncover these numbers so I will not be able to tell.
The only thing I can say is, at least the company did not lose $36 billion and they still paid him $400 million. The problem is that it happens…regularly.
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Sox First said:
Raymond’s payout might not be as bad as what some of his peers have received but it’s still outrageous. Exxon Mobil’s performance over the last two years is the result of soaring fuel and commodity prices, not management brilliance. And it comes at a time when investors are feeling less prosperous because of what they are paying at the fuel pump. Read about that at http://www.soxfirst.com/50226711/exxon_payout_nice_work_if_you_can_get_it.php
April 19th, 2006 at 1:14 pm
[...] The Dividend Guy asks, How much executive compensation is too much? You can react to newspaper headlines, or you can look at the underlying data. TDG suggests looking deeper at the numbers to determine whether compensation is fair. (236 words.) [...]