'Desperately Underpaid' Media Attack Another Oil Company Executive
Who needs Nostradamus when you have CNNâs âAmerican Morning"? Instead of waiting for someone to complain about a big executive payday, the April 9 showâs team whined about its own pay and predicted the AFL-CIO would chime in on their side.
The issue was the salary and other compensation for Occidental Petroleum Corp. (NYSE: OXY) CEO Ray Irani, who received $400 million in 2006. Even before the AFL-CIO had gone on record about the number, CNNâs morning team brought up that possibility and predicted the result. âSo, yes, this is an issue and we'll have to see if the AFL-CIO goes after Occidental Petroleum next,â commented âMind Your Businessâ newsman Andrew Ross Sorkin, visiting from his New York Times job.
Anchor Soledad OâBrien, who had earlier complained she was âdesperatelyâ underpaid, answered for Sorkin. âYou think with a number like that they will. Iâve got to imagine,â she said.
Sorkin called Iraniâs 2006 pay âwhat has to be one of the largest numbers in historyâ and linked it to several other high-profile CEO payouts, including ones at Pfizer and Home Depot. However, even Sorkin admitted it was a payout that took years to earn. âJust to be fair, this is money that has accumulated over the past several years. Had he not taken all these options he would have made just a paltry $55 million,â he told viewers.
Anchor Miles OâBrien responded with a sarcastic âHard to get by on that.â
The April 7 Los Angeles Times gave a more fair and detailed view of Iraniâs pay, which included âcashing in more than 7 million shares from stock options that were awarded back to 1997.â In addition, the company had to âdiscontinue a deferred stock program in October 2006 because the liability and expense of the program had âgrown substantially.ââ That resulted in another $93.3 million.
While that still resulted in a hefty â$55.6 million in salary, bonus, stock awards, deferred compensation and other benefits,â it also reflects how well the company has done under his leadership.
According to the Times, Occidentalâs stock price went from $9 at the end of 1990 to nearly $50 now â a more than 450-percent increase. CNNâs visiting reporter Sorkin downplayed that huge growth, saying: âThe company has done well, to be fair.â Then he quickly turned that performance into a union issue. âBut, obviously, CEO exec competition is so under pressure today and the AFL-CIO, which is one of the big union groups, has come out against Verizon in the recent days,â he explained.