Compensation for Marathon CEO jumps to $8.8M

AP News
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Posted: Feb 25, 2011 6:18 PM
Compensation for Marathon CEO jumps to $8.8M

The CEO of Marathon Oil saw his compensation jump 34 percent last year, to $8.8 million.

The bigger paycheck for President and CEO Clarence P. Cazalot Jr. came as net income for the big oil company rose 75 percent to $2.57 billion last year, and it began work in the Kurdistan portion of Iraq. Revenue for the year rose 36 percent to $72.2 billion.

Cazalot's base salary stayed the same, at $1.4 million. But his bonus grew by $400,000, to $2.5 million. And the value of new options awarded during the year jumped to $4.7 million, from $2.8 million in 2009. Those options were granted almost a year ago, and Cazalot has to stay with the company for three years to get all of them.

The company said its bonuses for Cazalot and other top executives were above target "for their contributions to our overall strong performance" for the year.

Marathon shares closed at $48.62 on Friday, near their high for the last 52 weeks of $50.56.

His compensation also included $7,336 for personal use of the corporate jet and $4,058 for physicals.

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation (which Marathon did not pay) and the estimated value of stock options and awards granted during the year.

The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.

Marathon plans its annual meeting for April 27 at its headquarters in Houston.