ExxonMobil shareholders voice frustration

DALLAS — ExxonMobil shareholders Wednesday showed their frustration with the giant retirement package given to former Chief Executive Lee Raymond.

Only about 79 percent of shareholders of the world's largest public company voted for this year's slate of board members, who decide how much to pay executives.

For the past two years, the Exxon boards were elected by about 97 percent.

And, for the first time, a shareholder proposal received a majority of votes, at 52.2 percent. The proposal: It should take a majority of votes to elect board members, rather than just one yes vote.

Chief Executive Rex Tillerson said the board will consider the proposal, but, on Raymond's retirement pay, he said: "I don't have any regrets."

The former chief executive retired at the end of last year. He got a $98.1 million lump-sum retirement payment, and during retirement he'll be able to redeem the $256 million in restricted shares and options he has accumulated over the course of his career.

"If you add it up the right way, it's a big number," said Tillerson, who isn't involved in setting executive compensation. "He had a remarkable run in this company. ... It's a result of a very long, deliberate process of positioning the company."

The first shareholder meeting that Tillerson presided over as chief executive marked the Irving, Texas-based company's best year: $36.1 billion net profit, the largest profit of any public company ever.

Outside the meeting, about 50 people protested Exxon's earnings and environmental views. The protesters, lead by a group called Exxpose Exxon, called on the company to invest in alternative fuels and commit to a strategy to address global warming, among other demands.

Some environmentalist shareholders brought those concerns inside the meeting, sending up proposals to the board and asking Tillerson prickly questions.

But such issues didn't resonate as much with shareholders at the meeting. The group of mostly middle-class retirees, some who brought their grandchildren, seemed more interested in executive pay.

Dallas resident Mary Louise Sampert said she was attending her first Exxon annual meeting out of curiosity, and because she was concerned about Raymond's retirement package.

"You know, so much publicity about his pay," she said.

"We were hoping they'd give that money to shareholders," said her husband, Bill Sampert, who joked he was just there for the coffee and doughnuts.

Lois Jameson, another Dallas resident, said: "I think he deserved what he got," though she said most of the women in her investment club disagree with her.

The audience cheered when a shareholder at the microphone called on Raymond to return half his pay and give a chunk to charity.

A few shareholders asked Tillerson to address environmental concerns: Why does Exxon donate to research organizations that question global warming? And how come Exxon doesn't invest in renewable fuels?

Tillerson said he is puzzled about accusations that Exxon supports research to debunk global-warming theories. He said that's not true; the company simply supports research that brings to light questions that haven't been answered about climate change, and that points out muddled conclusions.

"Why wouldn't everyone want to have a conversation on what we know and what we don't know?" he said. "Today, there is no conclusive, scientific model or basis that you can say doesn't have a flaw in it."

Further, Tillerson said global warming doesn't present any estimable financial risk to Exxon itself.

As for renewable fuels, Tillerson said Exxon has considered the various alternatives to petroleum but none is economically viable.

By the end of his first meeting in the hot seat, Tillerson had largely won over the audience.

One shareholder thanked him for his "friendliness, humor and candor," and compared that to Raymond's "disrespectful, rude" style; and the crowd cheered.

When asked if he might move the meeting to another city next year, Tillerson prompted laughter from the audience when he said: "There was some discussion about having it in Luckenbach, Texas, this year."

Later on, a shareholder suggested Tillerson invite Willie Nelson to perform. Nelson is promoting biodiesel fuel, made from agricultural products.