Top Exxon Executive Got 17 Percent Raise In 2011
NEW YORK (AP) - Exxon Mobil gave its top executive a 17 percent increase in compensation last year, as the oil giant posted one of its most profitable years on record.
Rex Tillerson, 60, received a pay package worth $25.2 million, up from $21.5 million in 2010, according to an AP analysis of a regulatory filing on Thursday.
Tillerson received an annual salary of $2.4 million, a bonus of $4.4 million and stock awards worth $17.9 million. He also received $519,230 in miscellaneous compensation including life insurance, personal security, personal use of company aircraft, and financial planning.
Exxon said that Tillerson, who has led America's biggest petroleum company since 2006, earned the increase in pay by boosting returns for shareholders. In 2011, Exxon beat the S&P 500 and industry average in shareholder returns. It also beat the industry average in return on average capital employed. The company added that its safety record was better than the average as well.
One of Tillerson's biggest moves over the past few years was to buy XTO Energy for $30 billion. The deal, which made Exxon America's biggest natural gas producer last year, was driven by the company's expectation that natural gas will replace coal by 2025 as the world's most popular energy source next to oil.
So far the investment hasn't paid off. A plunge in U.S. natural gas prices has sapped revenues of major producers like Exxon. Exxon still made huge profits last year, however, thanks to a jump in world oil prices. Its net income rose 34.8 percent to $41.1 billion -- the highest since 2008.
The AP executive compensation formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. It does not count changes in the present value of pension benefits, which makes the AP total slightly different from the total reported by companies to the Securities and Exchange Commission.
Exxon shares rose 90 cents to close at $83.60 on Thursday.
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