Aug. 30 (Bloomberg) — Rising prices and profits translated into pay packages for oil company chief executive officers that are nearly three times the size of similarly sized businesses, a new study from two watchdog groups said.
In 2005, the CEOs of the largest 15 oil companies averaged $32.7 million in compensation, compared with $11.6 million for all large U.S. firms, according to the study, released today by the Institute for Policy Studies and United for a Fair Economy.
Amid reports of multimillion-dollar pay packages, shareholder activists have sponsored resolutions to limit compensation at companies like Exxon Mobil Corp. and Home Depot Inc. In May, three members of the House of Representatives criticized the retirement benefits of former Exxon CEO Lee Raymond and asked the company to fill a gap in its workers’ pension fund.
“Instead of lining the pockets of executives, they should be investing the money into new sources of energy that go beyond fossil oils,” said Sarah Anderson, director of the global economy project at the Washington-based Institute for Policy Studies, and a co-author of the study.
Anderson’s group researches peace, justice and environmental issues. United for a Fair Economy, a non-profit group based in Boston, tries to raise awareness about the effects of “concentrated wealth and power,” according to its web site.
Combined $512.9 Million