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Some info on the BP CEO

B

Bone

Charter Member
This article says that the BP CEO will be stepping down in the near future...I think we all new that was coming! But at the end of the article, it says that the BP CEO made 1.5 million last year with a bonus of 3 miilion (US Dollars). Seriously, for a company that had 14 billion in profits in 2009, that's a disgustingly low-ball salary. Wall Street investment bank CEO's and their underlings get 10 to 20 times that amount.

Is this guy getting screwed, or what?

http://www.msnbc.msn.com/id/38334420/ns/business-oil_and_energy
 
Well, were not talking about a middle class Joe Job here. Think of it in the context of what it is. For instance, the top three earners at Delta Airlines each make between 12 million and 18 million dollars a year, and Delta rarely shows a profit.
 
Bone said:
This article says that the BP CEO will be stepping down in the near future...I think we all new that was coming! But at the end of the article, it says that the BP CEO made 1.5 million last year with a bonus of 3 miilion (US Dollars). Seriously, for a company that had 14 billion in profits in 2009, that's a disgustingly low-ball salary. Wall Street investment bank CEO's and their underlings get 10 to 20 times that amount.

Is this guy getting screwed, or what?

http://www.msnbc.msn.com/id/38334420/ns/business-oil_and_energy
Click to expand...

Personally, I think CEO incomes have gotten way out of hand. Years ago, the amount of money they made relative the rank and file in the company was a lot lower in ratio than it is today. When you factor in that both incomes have risen, to have the ratio increase a lot really spells out how much they have gotten out of hand!

Ken
 
Ken Stallings said:
Personally, I think CEO incomes have gotten way out of hand. Years ago, the amount of money they made relative the rank and file in the company was a lot lower in ratio than it is today. When you factor in that both incomes have risen, to have the ratio increase a lot really spells out how much they have gotten out of hand!

Ken
Click to expand...

True, so true. I think the paradigm shift in CEO pay came about during the early 1990's recession, when CEO's were more like hired guns brought in to reduce worker pay and increase productivity. For every dollar that came out of the average workers paycheck, a percentage of that dollar went into the CEO's end-year bonus.

I don't think the long over-due wage realignment is what's at work with the BP CEO salary.
 
Ken Stallings said:
Personally, I think CEO incomes have gotten way out of hand. Years ago, the amount of money they made relative the rank and file in the company was a lot lower in ratio than it is today.

Ken
Click to expand...

And sports-people and entertainers. Everything these days is so superficial and aimed at the lowest common denominator for the highest possible reward. There was a lot to be said for the days when if the king was not pleased by the jester, then "Off with his Head!"
 
cheezyflier said:
i'm sure he was compensated some other way, like stocks or some valuable perk.
Click to expand...

Right. The article mentions an additional $1 million in stock, and that's just for last year.

Chances are most of his compensation is in options. His cash and stock compensation is held down to minimize taxes.

The guy's well paid and my heart isn't bleeding for him.

EDIT: Here's a look at his total compensation package as it stood about six weeks before the Deepwater Horizon blowout.

And here's an attempt to calculate his compensation including options.

Given the depressed level of BP shares, his options are you should excuse the expression underwater right now.

There's always the chance the company will try to provide a new options package, probably tied to his exit, though there'll be investor pressure against that.

I stand corrected to a degree - he's not highly paid by the standards of American CEO's. On the other hand, it's hard to argue that he should be better paid than he is.
 
Ken Stallings said:
Personally, I think CEO incomes have gotten way out of hand. Years ago, the amount of money they made relative the rank and file in the company was a lot lower in ratio than it is today. When you factor in that both incomes have risen, to have the ratio increase a lot really spells out how much they have gotten out of hand!

Ken
Click to expand...
I am a capitalist, through and through, but I agree with Ken. CEO and top management incomes for many companies have become so large that it places financial strain on the company and, ultimately, its share holders. That is simply poor fiscal management. I'm not in favor of governments bailing out such companies, let them go under and maybe all the others will get a clue that they must police themselves or go bankrupt. Now if a company is being run like a well oiled machine, makes great profits, employees are happy, share holders are happy, then bonuses for good management are in order.
 
There used to be ratio- I forget what it is, but it had to do with what the CEO made vs. what the lowest paid employee made. Lets say it was 4X for the sake of arguement. Companies used to take care of their employees.

This guy get screwed? Well, judging from his attitude during the response and how this disaster happened in the first place. I think the shareholders got screwed.
 
Bone said:
Well, were not talking about a middle class Joe Job here. Think of it in the context of what it is. For instance, the top three earners at Delta Airlines each make between 12 million and 18 million dollars a year, and Delta rarely shows a profit.
Click to expand...

Gee, I wonder why? Could it be because these "top three earners" are grossly overpaid?

Top Executives salaries, bonuses and perks should be indexed to the company's profitability, IMHO.
 
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