Exxon Mobil Corp.'s top executive received slightly lower compensation last year, according to an analysis by The Associated Press.
Chairman and CEO Rex Tillerson received compensation worth $21.5 million, about 1 percent lower than the previous year, according to a company filing with the SEC.
The drop came mostly from a 9 percent decline in stock awards that were worth $15.5 million in 2010 compared with $17 million in 2009. Tillerson's salary increased 7 percent to $2.2 million, and his bonus rose 40 percent to $3.4 million. He also received $443,921 in company perks; including security services, life insurance and the use of company aircraft.
Tillerson has led the world's largest publicly traded company since 2006. Last year, Exxon earnings rose 58 percent to $30.5 billion. Exxon earned more per barrel of oil and gas in the final three months of 2010Chevron Corp. and ConocoPhillips. Exxon also led industry efforts to develop an oil spill response system following BP's massive spill in the Gulf of Mexico a year ago.
Exxon shares rose from $68.72 at the start of 2010 to $73.12 on the last day of the year.
The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive's stock and option awards for 2010 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or to exercise options.