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ExxonMobil CEO, other officials took pay increase, US-millions in bonus as oil production in Guyana ramps up
Chief Executive Officer (CEO) of ExxonMobil Corporation, Darren Woods
Kaieteur News – The exciting drilling and production results of ExxonMobil in its most cherished acreage globally, the 6.6 million acres-Stabroek Block in Guyana has been increasing the profits of the American oil company, with top executives being praised for the remarkable growth benefitting the shareholders.
In acknowledgement of the company’s achievements, its Chairman and Chief Executive Officer (CEO), Darren Woods, as well as four other senior executives have been granted salary increases effective January 1, 2024.
This year, Woods will be paid an additional US$94,000 annually or more than $1.5M monthly. His new monthly salary is US$164,083- equivalent to more than $32.8M GYD.
Kaieteur News understands that among those receiving a bigger pay cheque this year are Senior Vice President and Chief Financial Officer, Kathryn Mikells, Senior Vice Presidents, Neil Chapman and Jack Williams and President, ExxonMobil Product Solutions Company, Karen McKee.
Exxon revealed to its shareholders that the annual salary was increased for Mr. Woods to $1,969,000; Ms. Mikells to $1,276,000; Mr. Chapman to $1,259,000; Mr. Williams to $1,271,000; and Ms. McKee to $1,116,200, with effect from January 1, 2024.
Table showing the salary increases received by the top executives of Exxon since 2021
See table attached for salaries paid in 2023.
Notably, the top executives also benefitted from massive year-end bonuses last year. For instance, Woods received US$4,787,000; Mikells US$3,154,000; Chapman US$3,282,000; Williams US$3,282,000 and McKee US$2,799,000.
The company in its 2023 Annual Report, released on Thursday, revealed that it pocketed US$36B in profits, driven by the record levels of oil production in Guyana and the Permian.
Woods told shareholders of the Fortune-500 company that Exxon outpaced peers across a range of metrics, delivering earnings of $36 billion and operating cash flows of $55 billion. In fact, he boasted that since 2019, the oil giant has grown earnings at a compound annual growth rate of more than 40% and cash flow by more than 15% – both well ahead of its nearest peer.
Woods was keen to note, “Our industry leadership extends to our record annual production in Guyana and the Permian and the continued strengthening of our already advantaged portfolio through divestments, acquisitions, and investments.”
The CEO described Exxon’s oil and gas activities in Guyana as one of “our most exciting and successful – for our business, the people of Guyana, and the world”.
ExxonMobil Guyana Limited, the subsidiary of Exxon Mobil Corporation is currently producing approximately 645,000 barrels per day (bpd) in the Stabroek Block, offshore Guyana. Three projects, the Liza One, Liza Two and Payara are currently in operation.
A fourth Floating Production Storage and Offloading (FPSO) vessel- One Guyana- is expected to startup in 2025; while the fifth project- Uaru- is poised for first oil in 2025.
Only on Friday Exxon announced that its sixth development- Whiptail- has been sanctioned by the government of Guyana. It therefore noted that the Stabroek Block partners are on track to have six FPSOs operational by 2027, which will collectively produce 1.3 million barrels per day.
Even as oil production activities continue to ramp up locally, undoubtedly delivering more profits to ExxonMobil and its Co-Venturers, the Government of Guyana (GoG) has refused to engage the operator of the Stabroek Block for a renegotiation of the lopsided contract that governs the area.
While Exxon can pay higher salaries and massive bonuses to its executives on account of the growth of production activities in Guyana, the country has not been able to extend the same privilege to its public servants. This had resulted in a month-long strike by educators across the nation earlier this year. Similarly, the country has been losing its trained nurses to other countries, and is now mulling the importation of labour from Bangladesh and Cuba to fill to fill the human resource gap.
The current Petroleum Agreement that was signed in 2016 by the former administration has been widely criticized, however, the People’s Progressive Party (PPP), though it promised to renegotiate all oil contracts, is now arguing that such a move could destabilize the country and its growth prospects.
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