Due to increased gas prices and other global factors during the past year, oil and gas companies have witnessed a significant increase in their revenues.
The senior executives of the companies have seen their salaries increase thanks to this profit. Major oil and gas company ExxonMobil handed its chief executive a 52 percent pay increase to $35.9 million (28.7 million Pounds) for 2022 after the oil company reported its highest ever profits amid Russia’s invasion of Ukraine, according to The Guardian.
Darren Woods’ incentives and share awards increased by 80%, and his pay increased by 10% to $1.9 million. The organisation claimed that the large payout was “reflective of record company earnings and stock price performance”.
The news outlet further reported that ExxonMobil made $56 billion in profits, or $6.3 million an hour, last year after the war in Ukraine ignited a surge in global oil and gas prices.
The oil company’s employees, however, did not receive the same increase. The truth is that annual salaries for employees at numerous major energy corporations are going down.
The median pay for an Exxon worker fell 9% last year to $171,582, while Chevron’s median worker pay dropped 12% to $161,488, filings showed.
The two largest US oil companies posted record profits in 2022 on the back of high energy prices and cost-cutting measures, including payroll reductions. Exxon posted the most among Western oil majors. Chevron’s profit more than doubled in 2022 to a record $36.5 billion.
Exxon’s chief received the highest percentage increase among peers, with Chevron CEO Michael Wirth receiving a 4% increase. Occidental Petroleum’s CEO Vicki Hollub’s pay rose 35%, while ConocoPhillips CEO Ryan Lance’s pay fell 16%, all compared to their prior year.
According to their proxy filings, the median annual pay for Occidental workers rose 19% last year to $187,168, while at Conoco it fell 1% to $177,533.
Under a new calculation disclosure required by the SEC on potential gains by executives on unvested stock awards, Woods’ pay would be $89.7 million in 2022, a securities filing showed.
The figure provides more transparency on compensation given by companies in equity, according to shareholder advocacy group As We Sow. But it is not the best reflection of compensation, as the total value cashed out by executives could only be known when options are exercised or stock is sold, the group says.
Under the same metric, Woods lost more than $7 million in 2020.