DALLAS May 29 Fewer shareholders of Exxon Mobil
Corp on Wednesday cast votes in favor of the oil
company's executive compensation following a year when Chief
Executive Officer Rex Tillerson's total pay climbed 15 percent
to about $40 million.
Proxy advisory firm ISS had recommended that shareholders
withhold support for CEO Tillerson's compensation, citing
Exxon's "modest" shareholder returns and the company's reliance
on awards that have less emphasis on performance.
This year at the company's annual meeting, 71 percent of
Exxon's shareholders cast a non binding vote supporting the
compensation of the company's named executives, compared with 78
percent last year. The average support for so-called say-on-pay
results was 91 percent in 2012, according to ISS.
Tillerson told reporters after the meeting that the decline
in support for his pay "wasn't a significant move" and meant
that 70 percent of Exxon's shareholders were happy with the
company's compensation practices.
Exxon's total shareholder return - or capital gains plus
dividends - for the year ended 2012 was about 5 percent,
compared with 16 percent for the Standard & Poor's 500,
according to ISS.
Exxon contends that ISS's model inappropriately emphasizes
short-term stock performance and disregards the long-term
investing cycles for an oil company like Exxon.
In 2012, Tillerson's total compensation as calculated by the
proxy firm rose 15 percent to $40 million.