Today's Reactions

Posted on April 25, 2006 at 11.58 by jns · Permalink
In: All, Curious Stuff

One Response

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  1. Written by S.W. Anderson
    on Wednesday, 26 April 2006 at 00.10
    Permalink

    Effective outrage over the disparity in compensation is too diffuse to do any good. It's like grousing about the weather.

    Notwithstanding Exxon-Mobile's obscene profits and dandy stock price, I defy anyone to make an objective case Raymond actually did work for the corporation commensurate with all those hundreds of millions of dollars he's got and will get.

    One thing to keep in mind is that the guy was dealing in a standard commodity at one of the world's leading oil companies going in. He didn't have to invent or reinvent any wheels.

    Ever-increasing demand for the product was and is automatic. Furthermore, Exxon is in about as little danger from competition as a major corporation can be.

    Lastly, are we to believe there weren't thousands, maybe tens of thousands, of equally capable executives who would've jumped at the chance to run Exxon, even at, say, one-third Raymond's take?

    I can't come up with any logical, believable evidence the marketplace for executives bid up Raymond's rewards to those levels.

    Same goes for ex-GE poobah, Jack Welch.

    Is there some kind of corruption at work? Are trustees or maybe their kin getting payoffs of some kind? It wouldn't surprise me.

    Even if it's just a case of free and easy stupidity on the part of Exxon's trustees, there ought to be a limit.

    I submit that when you have someone with $100 million or more in assets and making tens of millions a year, tax away everything over, say, $5 million a year. I don't think the few people making that kind of money can appreciate the difference of making $5 million plus an extra dollar. I don't think they feel any pain at simply not getting money above such a large sum, either.

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