CEO'S HEADING OIL AND MILITARY FIRMS SEE LARGER PAY INCREASES THAN THOSE IN OTHER INDUSTRIES09/05/06
From the United For A Fair Economy Press Release: "CEOs in the defense and oil industries have been able to translate war and rising oil prices into personal jackpots, according to a new report from the Institute for Policy Studies and United for a Fair Economy, "Executive Excess 2006."
OIL BARONS: With Americans now paying over $3 per gallon, petroleum profiteers are raking in nearly three times the pay of CEOs in comparably sized businesses. In 2005, the top 15 U.S. oil CEOs got a 50% raise since 2004. They now average $32.7 million, compared with $11.6 million for all CEOs of large U.S. firms.
Executive pay at U.S.-based oil companies also far outpaced pay at oil companies based outside the United States. BP and Royal Dutch Shell paid their CEOs only one-eighth what their U.S. counterparts collected â€¹ just $5.6 and $4.1 million in 2005, respectively â€¹ even though both companies operate in the same global marketplace as their U.S.-based competitors.
CEO William Greehey of Valero Energy took home the oil industryÂ¹s biggest executive pay rewards in 2005, pocketing $95.2 million. The average construction worker at an energy company would have to work 4,279 years to equal what Greehey collected last year.
DEFENSE CONTRACTORS: Since the Â³War on TerrorÂ² began, CEOs at the top 34 military contractors have enjoyed average paychecks that are double the compensation they received in the four years leading up to 9/11.
The new "Executive Excess" report surveys all publicly held U.S. corporations among the top 100 defense contractors that had at least 10 percent of revenues in defense. These 34 CEOs combined have pocketed almost a billion dollars since 9/11 â€¹ enough to employ more than a million Iraqis for a year to rebuild their country.
In 2005, defense industry CEOs walked off with 44 times more pay than military generals with 20 years experience, and 308 times more than Army privates.
United Technologies CEO George David led the pack with over $200 million in pay since 9/11, despite investigations into the quality of the companyÂ¹s Black Hawk helicopters."
Our guest was Chuck Collins of UFE.