Exxon CEO’s Pay Jumps 52% in 2022
Exxon Mobil Corp. CEO Darren Woods saw his pay jump 52% in 2022, as the company’s profits surged due to the end of the war in Ukraine and a recovery in oil prices.
Woods’ total compensation for the year was $20.7 million, up from $13.6 million in 2021, according to a regulatory filing. The increase was driven by a $7.3 million bonus, which was more than double the $3.3 million he received in 2021.
The bonus was based on Exxon’s performance in 2022, which was boosted by the end of the war in Ukraine and a recovery in oil prices. The company’s profits rose to $19.7 billion, up from $14.4 billion in 2021.
Exxon’s Performance in 2022
Exxon’s performance in 2022 was driven by a number of factors. The end of the war in Ukraine, which had been dragging on since 2014, helped to boost oil prices. The conflict had caused a disruption in the supply of oil from the region, which had weighed on prices.
The recovery in oil prices was also driven by a number of other factors, including increased demand from China and other emerging markets, as well as OPEC’s decision to cut production.
Exxon also benefited from a number of other factors, including cost-cutting measures and a focus on higher-margin businesses. The company’s refining and chemicals businesses both saw strong growth in 2022, while its upstream business also performed well.
Woods’ Compensation
Woods’ compensation for 2022 included a base salary of $1.8 million, a bonus of $7.3 million, and stock awards of $10.6 million. The bonus was based on Exxon’s performance in 2022, which was significantly better than in 2021.
The company’s board of directors also noted that Woods had “demonstrated strong leadership” during the year, and had “successfully navigated the company through a challenging business environment.”
Woods’ total compensation was slightly lower than the median for CEOs of large U.S. companies, which was $21.3 million in 2022. However, it was still significantly higher than the median for CEOs of oil and gas companies, which was $14.2 million.
Shareholder Reaction
Exxon’s shareholders have generally been supportive of Woods’ compensation. The company’s stock price has risen steadily since he took over as CEO in 2017, and the company has outperformed its peers in terms of total returns.
However, some shareholders have expressed concern about the size of Woods’ bonus. In a statement, the activist investor group As You Sow said that the bonus was “excessive” and “not in line with the company’s performance.”
Conclusion
Exxon CEO Darren Woods saw his pay jump 52% in 2022, as the company’s profits surged due to the end of the war in Ukraine and a recovery in oil prices. The increase was driven by a $7.3 million bonus, which was more than double the $3.3 million he received in 2021. Exxon’s shareholders have generally been supportive of Woods’ compensation, although some have expressed concern about the size of his bonus.