ExxonMobil CEO Gets Raise
NEW YORK -- Exxon Mobil Corp. Chairman and Chief Executive Rex W. Tillerson will receive a 10 percent base salary increase of $187,000 to $2.06 million in 2009, as well as 225,000 shares of restricted stock, according to a filing with regulators.
The salary boost nears the 11 percent increase Wall Street analysts expect for the oil giant's 2008 profit, which is now estimated to be a little more than $46 billion, according to a survey by FactSet Research. However, in 2009, analysts expect ExxonMobil's annual earnings to fall by about $8 billion to $34 billion as the energy boom turned to bust.
On the heels of triple-digit oil prices this year, ExxonMobil's Compensation Committee recently established a ceiling of $232 million for 2008 bonuses to executives at the world's largest corporation by market capitalization of nearly $400 billion.
Tillerson, who turned 56 this year, gets a 1.7 percent share of the total bonus pie, worth up to $4 million, if conditions are met under the oil giant's "short-term incentive program," according to the company.
Tillerson's 225,000 restricted shares, which carry a value of $17.5 million based on Tuesday's closing price, come with a 10-year lock up. During the restricted period, he will retain the right to receive dividends and voting rights. Last year, he received 185,000 restricted shares.
Exxon Mobil Corp.'s third-quarter net income rose 58 percent, to a new record of nearly $15 billion, the energy giant reported in late October. However, with oil prices now retreating well below $50 a barrel, the period marked a high point in profits in the months leading up to and immediately after the record price of more than $147 a barrel in early July.
Seeking to weave benchmarks into Tillerson's 2009 pay, the company's short-term incentive program awards half of Tillerson's $4 million bonus in cash by year-end. The remaining 50 percent will be paid after three years through the use of earnings bonus units, which are subject to recoupment in the event of a material negative restatement of results.
The salary boost nears the 11 percent increase Wall Street analysts expect for the oil giant's 2008 profit, which is now estimated to be a little more than $46 billion, according to a survey by FactSet Research. However, in 2009, analysts expect ExxonMobil's annual earnings to fall by about $8 billion to $34 billion as the energy boom turned to bust.
On the heels of triple-digit oil prices this year, ExxonMobil's Compensation Committee recently established a ceiling of $232 million for 2008 bonuses to executives at the world's largest corporation by market capitalization of nearly $400 billion.
Tillerson, who turned 56 this year, gets a 1.7 percent share of the total bonus pie, worth up to $4 million, if conditions are met under the oil giant's "short-term incentive program," according to the company.
Tillerson's 225,000 restricted shares, which carry a value of $17.5 million based on Tuesday's closing price, come with a 10-year lock up. During the restricted period, he will retain the right to receive dividends and voting rights. Last year, he received 185,000 restricted shares.
Exxon Mobil Corp.'s third-quarter net income rose 58 percent, to a new record of nearly $15 billion, the energy giant reported in late October. However, with oil prices now retreating well below $50 a barrel, the period marked a high point in profits in the months leading up to and immediately after the record price of more than $147 a barrel in early July.
Seeking to weave benchmarks into Tillerson's 2009 pay, the company's short-term incentive program awards half of Tillerson's $4 million bonus in cash by year-end. The remaining 50 percent will be paid after three years through the use of earnings bonus units, which are subject to recoupment in the event of a material negative restatement of results.