Ex-Exxon CEO's Massive Pension Draws Fire

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His $98 million pension payout reflects 43 years of service. But he would have received nearly $17 million less had he retired just last year, according to the company's 2005 proxy statement.

In this year's proxy statement, Exxon defended the package by saying it rewards Raymond's "outstanding leadership of the business, continued strengthening of our worldwide competitive position, and continuing progress toward achieving long-range strategic goals." Raymond had been CEO since 1993 before stepping down at the end of last year.

Exxon added that Raymond's compensation is "appropriately positioned relative to CEOs of U.S.-based, integrated oil companies and other major U.S.-based corporations, particluarly in view of the long-term performance of the company and the substantial experience and expertise that Mr. Raymond has brought to the job."

Last year, Chevron Corp. Chairman and CEO David O'Reilly received a $1.55 million salary, $3.5 million bonus and $3.57 million in long-term compensation. He did not exercise any options, but owns options valued at just over $34 million, including exercisable options worth $28 million, according to Chevron's proxy.

Fugate, who specializes in executive compensation and management, said Exxon is sending a "very, very bad signal" by allowing Raymond to select the lump-sum payout.

"They are in very, very rich times, so on one hand they say, 'we can afford it,' but on the other hand they are taking an awful lot of heat because they've made too much at the expense of consumers. I'm surprised they are not being asked to justify that."
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