I was surfing the net and getting my daily feed of news from around the world when I spied this on The Drudge Report: “Exxon Chairman gets $400 million retirement package.” The Drudge took me to ABC News where I read this:
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.
The article says later on that this is five times higher than what Chevron’s CEO makes, the next largest oil company.
Now, I did a little math and I came to a couple of conclusions. The biggest conclusion I can come up with is we’re getting screwed here, people!
According to Gulf Oil and Gas, EXXON sold 917 million barrels of liquid oil in 2005. At 20 gallons of gas to a barrel of oil, that’s around 18 billion gallons of gas for a year. Pretty impressive numbers. That’s somewhere around $60 billion in sales at $3 a gallon!
I think what’s the most screwed up about this whole thing is that we’re not paying for the gas that the oil companies are buying today. We’re buying the oil that they paid $40 a barrel for last year! The price goes up on Wall Street and it’s immediately reflected in the price at the pump. The stuff the oil companies are buying today won’t make it to the gas station for months!
Are you getting this? They made almost two dollars a gallon profit! That’s even if I really, really screwed these numbers up, which I don’t think I did. I mean, I probably screwed some numbers up here, but not that bad; let’s just cut it in half. It’s still around $1 a gallon! That’s robbery! Think about it for a second. That’s $20 a tank of profit for EXXON if you only have a 20-gallon gas tank! Think how screwed you are if you’ve got a car with a nice 26 or 30-gallon tank.
I understand that companies need to make a profit and I don’t hold that against them, but why does this guy need a $400,000,000 retirement package? Did you get that? Let me spell it out for you…Four Hundred Million Dollars! He can’t possibly spend it! Hell, his kids’ kids can’t spend it! Not only are they giving him that monster golden parachute, they’re giving him a million dollar-a-year consulting gig!
The other thing I’m starting to notice is how the usually cheap gas stations (you know the ones, the WaWa or the Citgo or Luke Oil) that are usually cheaper than the EXXONs, Shells, and other “name brand” gas stations, are starting to show prices close to or even with the big guys all the time. I was driving up the eastern shore of Virginia a few weeks back and every gas station had the same price. Have you ever seen that before? I’m talking 150 miles worth of four lane backwoods-type roads. The prices normally aren’t too bad and they’ll vary a penny or two. I mean, the eastern shore isn’t on any list of people with too much money, but every station had the same price.
When they first opened a WaWa between my house and my work, I was pretty happy about it. In NJ, WaWa is almost always the cheapest gas you can find. When they first opened up this WaWa here, they were always the lowest around. I even went inside one day and let them know that the station down the street was lower. They lowered their price even more. Not anymore!
On that ABC link above, they quote Mr. Raymond from the hearings on the Hill in 2004. “We’re all in this together, everywhere in the world”. I’m here to tell you, someone with $400,000,000 in his bank account doesn’t have a clue about the rest of us…“everywhere in the world.”