WTF !!! CALTEX Boss $14m Payday..No Wonder Petrol is Expensive!!!

[csv8]

"The boss of oil refiner and fuel distributor Caltex earned a motza in 2015 as profits surged following the closure of the Kurnell refinery, which saw hundreds of jobs axed.

It also followed swelling profit margins as the price of oil fell.

Julian Segal joined the ranks of the highest-paid bosses in the country thanks to bonuses and the payout of Caltex shares, which lifted his remuneration to $13.86 million - a multiple of several times his base salary of $2.18 million. In 2014 his payout was $5 million.
"Our priority now is growth," Caltex CEO Julian Segal says.

He wasn't alone, with the company's chief financial officer, Simon Hepworth, pocketing $3.95 million, well above his base salary of $788,647.

The company's largesse was shared among several of the company's senior executives, with another six officials receiving $1 million-plus payments.

A large part of the lift in senior executives' salaries was the granting of Caltex shares accumulated over the past several years amid rising shareholder returns.

Caltex closed its Kurnell refinery in 2014, with the loss of several hundred jobs, as it converted the site into an oil import terminal. The Kurnell closure hit other operators nearby, for example forcing AGL to close an LPG unit that used fuel from the refinery.

Mr Segal said employees at Kurnell opted to stay with the company as it shut down the refinery, unlike some competitors whose employees quit ahead of the completion of refinery shutdowns, which made the shutdown more difficult.

Additionally Caltex offered $8,000 of retraining to affected employees, with a large number deciding to retire. As a result, 100 or fewer of those working at Kurnell lost their jobs with the refinery closure.

Caltex has begin to dismantle the refinery and from late next year it will commence remediation of the site. It has set aside $270 million for the clean-up, which includes a contingency "for the unknown," Mr Hepworth said. "All financial liabilities have been covered. this is not a site we are abandoning."

The lift in bonuses paid to senior executives followed a lift in the 2015 net profit to $522 million in 2015, from just $20 million a year earlier. Revenue fell to $20 billion from $23.9 billion a year earlier, due to the decline in the oil price.

In 2015, Caltex said its underlying earnings, as measured by the replacement cost operating profit, rose to $977 million in 2015 from $795 million a year earlier. After taking into account taqx and extraordinary items, the profit stood at $628 million for 2015, up from $493 million a year earlier.

Caltex said its total fuel sales fell to 16.1 billion litres in 2015 from 16.8 billion litres a year earlier, reflecting both competitive pressures along with the winding up of one-off lifts to demand which it enjoyed from the building of gas-export plants in Queensland and also demand from the search for the missing MH370 aircraft in the Indian Ocean.

Recent contract wins are likely to recoup those volume losses, it said.

The surge in earnings helped Caltex to launch a $270 million off-market share buyback, along with a dividend hike, as it begins to pass on the surge in profits following the Kurnell refinery shutdown.

Caltex closed the Kurnell refinery 18 months ago. It has since been converted into a fuel import terminal.

Most analysts' focus was on the size of the share buyback, since Caltex had signalled a year ago that a share buyback was likely unless it made a large acquisition. Caltex said it expected to complete the buyback in the second quarter.

The final dividend has been raised to 70¢, which takes the annual dividend to 117¢ a share, it said, up from the 70¢ a share annual payout a year earlier.

Earnings a share hit 193¢, up from just 7¢ a year earlier."
http://www.brisbanetimes.com.au/busi...22-gn0w0b.html

[Wretched]

Bonus being paid relative to company performance. So? Not sure how this is really news.
He runs a multi billion dollar company, what do you expect? If the company lost money he wouldn't got it. It is nothing new.

Should we then start assessing everyone's bonuses? Even those that get one just by turning up to work?

[csv8]

Wretched..petrol is alot more expensive than it should be,,if petrol was at the current world oil price/exchange rate, his pay wouldnt be so high..not denying anyone a payrise but its how he earned it. Economist on ABC said "no one has had a proper pay rise for 5 years" but CEO's seem to get abnormal payrises...Alan Joyce of Qantas is another example of payrise earned by running Qantas into the ground.....

[Wretched]

Originally Posted by csv8

Wretched..petrol is alot more expensive than it should be,,if petrol was at the current world oil price/exchange rate, his pay wouldnt be so high..not denying anyone a payrise but its how he earned it. Economist on ABC said "no one has had a proper pay rise for 5 years" but CEO's seem to get abnormal payrises...Alan Joyce of Qantas is another example of payrise earned by running Qantas into the ground.....

Disagree totally. The price of petrol is more to do with a number of factors that include the price of the $ and the output of refined oil by the OPEC nations and Arab states. Then there is also the tax on the petrol we consume. If you believe in unicorns and fairy tales, then you will believe petrol will drop below $1 a litre. Inflation and other factors affect that, not a CEOs salary.

Alan Joyce running QANTAS into the ground?
Explain the profit reportedthen. He may not have been popular with his decisions but in the end the company is still around. Alan Mulally wasn't popular either but look at what he has done for Ford.

[nuthin' fancy]

Originally Posted by Wretched

Disagree totally. The price of petrol is more to do with a number of factors that include the price of the $ and the output of refined oil by the OPEC nations and Arab states. Then there is also the tax on the petrol we consume. If you believe in unicorns and fairy tales, then you will believe petrol will drop below $1 a litre. Inflation and other factors affect that, not a CEOs salary.

Less than $1 here in Geelong, you didn't have to wait long for your fairy tale to come true.

Originally Posted by Wretched

Alan Joyce running QANTAS into the ground?
Explain the profit reportedthen. He may not have been popular with his decisions but in the end the company is still around. Alan Mulally wasn't popular either but look at what he has done for Ford.

Alan Joyce became CEO in November 2008.

Net figures under Alan Joyce still show a $1b loss overall. There is no pint juts taking one year in isolation.

[Jess1992]

Can someone please give me this gist of this post, it was way too long to bother reading

[DBourne]

Originally Posted by Jess1992

Can someone please give me this gist of this post, it was way too long to bother reading

Fuel CEO got lots of money.
This annoyed people.

/thread

[wodahs]

Originally Posted by Jess1992

Can someone please give me this gist of this post, it was way too long to bother reading

once upon a time some one made a heap of money doing what seemed to be very little to the common folk . the end

[Beastie]

Originally Posted by Jess1992

Can someone please give me this gist of this post, it was way too long to bother reading

Ha ha....It's about CEO's that make a heap of money and then they have to decide what car is appropriate for them to buy next...

[superyob]

What's with the insults? Surely Mr Wretched is entitled to his opinion???

[Smoke Pursuit]

Originally Posted by csv8

Wretched..petrol is alot more expensive than it should be,,if petrol was at the current world oil price/exchange rate, his pay wouldnt be so high..not denying anyone a payrise but its how he earned it. Economist on ABC said "no one has had a proper pay rise for 5 years" but CEO's seem to get abnormal payrises...Alan Joyce of Qantas is another example of payrise earned by running Qantas into the ground.....

Qantas is actually doing really well at the moment. One of the key factors was them hedging fuel prices.

[csv8]

Wretched ..have you flown QANTAS lately?? KFC box type meals, aircraft not looking very clean, what once was Australias premier airline is now not ....Thank you Allan ,,, I was in Brisbane on the weekend and paid $1.19l for 98....91 was 96.9cl..not with shoppa docket at a BP....

[Wretched]

Originally Posted by csv8

Wretched ..have you flown QANTAS lately?? KFC box type meals, aircraft not looking very clean, what once was Australias premier airline is now not ....Thank you Allan ,,, I was in Brisbane on the weekend and paid $1.19l for 98....91 was 96.9cl..not with shoppa docket at a BP....

Actually I have, several times last year, along with Virgin. There is nothing wrong with the food, i thought it was an improvement on the microwaved powdered egg or stale mac and cheese of previous times. I had the same type of packaged food when I flew a large international carrier this year. I cannot be happier with the cleanliness of the aircraft. Flown JetStar (yes i know a QANTAS company)?

I have been happy with QANTAS service of late and I cannot complain, yes you pay a little more for their flights but when you add up all the extras you get compared to the cut price carriers it is pretty close if not more than what QANTAS charge.

Well congrats on the good price you got, but do you really expect that to last? We're using a finite resource at record levels with no real contingency plan in place when it is used up. Controlling usage through price is one way. But like my post previously, check how much taxes and duties are on the fuel vs how much the companies make from it.

I'd love to see how many here would be able to put their money where their mouth is and run a billion dollar company successfully on their current wage. No bonuses tied to performance, you just get a salary, still have to work all those hours no overtime pay either. See how you go making those decisions affecting the future of the company, managing political pressures and continue to put the company at the forefront of its industry. No?
Ok so just be a shareholder and vote on the pay of execs.

[GS608]

Originally Posted by Wretched

I'd love to see how many here would be able to put their money where their mouth is and run a billion dollar company successfully on their current wage. No bonuses tied to performance, you just get a salary, still have to work all those hours no overtime pay either. See how you go making those decisions affecting the future of the company, managing political pressures and continue to put the company at the forefront of its industry. No?
Ok so just be a shareholder and vote on the pay of execs.

You make it sound like he does all the work himself, many many levels of management under him making the hard decisions and actually running the company.

[thefargo]

Originally Posted by Wretched

Actually I....

No bonuses tied to performance, you just get a salary, still have to work all those hours no overtime pay either. See how you go making those decisions affecting the future of the company, managing political pressures and continue to put the company at the forefront of its industry. No?
.....

if that was the case you would be called "teacher" and tasked with shaping the next generation, or two.
future of the company?.....future of the nation.

not a fair comparison, cost of oil vs futures of the youth

[b0son]

The bigger issue is executive remuneration in general. It's frankly absurd. Millions per year, and then millions more in bonuses to motivate them?

It's like being given Miranda Kerr as a personal sex slave, but then needing a threesome with Gigi Hadid to motivate you to do anything with Miranda Kerr.

[mike_nofx]

Originally Posted by b0son

The bigger issue is executive remuneration in general. It's frankly absurd. Millions per year, and then millions more in bonuses to motivate them?

It's like being given Miranda Kerr as a personal sex slave, but then needing a threesome with Gigi Hadid to motivate you to do anything with Miranda Kerr.

If you could get away with it, why not?

If I could be paid $14m for my job, with Miranda Kerr sex slave and the option of Gigi 3 ways I'd take it. Wouldn't you?

[b0son]

Originally Posted by mike_nofx

If I could be paid $14m for my job, with Miranda Kerr sex slave and the option of Gigi 3 ways I'd take it. Wouldn't you?

I'd do offer to do that pro-bono ... or would that be pro-boner in this case....

[blackf6]

Not sure why you would care. Good on him. I deliver fuel and get paid chump change. I think, if you earnt as much..... This thread wouldn't exist.

[Express]

$14 million is nothing in the world of oil profits, it’s not even an eye dropper full.

This is the type of money made by people at this corporate level, join them if you can.

[SYZ]

Originally Posted by Express

$14 million is nothing in the world of oil profits, it’s not even an eye dropper full.

This is the type of money made by people at this corporate level, join them if you can.

Agree totally. If this bloke was "only" earning $1.4 million p/a do some people truly think the pump price would drop? A few lessons in Economics 101 is obviously needed here.

[Windsor220]

With the amount of fuel people buy they've probably made that profit off 1 cent a litre extra.

[buggo]

Such a non-story its not even funny.

I looked up some numbers real quick and came up with the following:

Litres of fuel sold in Aus 2013-14 = 32,402,000,000 litres
Market share of Caltex Aus 2013-14 = 18%

That means Caltex sold 5,832,360,000 litres of petrol, diesel etc. To get a bonus of $13,860,000 means he loaded price per litre by $0.0024. Less than 1 quarter of 1 cent. That is seriously nothing especially when the Government's fuel excise is $0.38143 a litre, then add another 10% GST on top of the final rate.

Big jobs get big money but come with big risks. That's it.

[b0son]

Originally Posted by buggo

Big jobs get big money but come with big risks. That's it.

What is a CEO personally risking? He's not required to invest personal capital in the enterprise.

[CoupeKing]

Originally Posted by b0son

What is a CEO personally risking? He's not required to invest personal capital in the enterprise.

Nothing...maybe social status if it goes &^% up - made enough over the years to live under the 'radar' if a scape-goat is needed.

This countries central nervous system is run by fuel, alcohol and tobacco tax.

[buggo]

Originally Posted by b0son

What is a CEO personally risking? He's not required to invest personal capital in the enterprise.

Each decision he makes has he needs to be certain is the right one. Not only does he have his own reputation as a C-suite on the line for future roles, but the livelihoods of each employee that falls under him. Every slide in market share, or decline in growth means normal peoples lives are ruined. That is a big responsibility to take on.

He also needs to make sure his investors see growth and keep putting up their money into the company, which also benefits him.

Most all CEO/ Upper tier employee bonuses are not given in cash, but in company shares.
If he drops the ball big time, his $13m can turn into $3m, but if he works hard, makes good & sound business decisions and keeps Caltex profitable, his $13m will be worth a lot more in the coming years. That's the incentive of getting big bonuses like this, it's in everyone's interest he keeps it up and money is the motivator. That's the biggest personal risk.

[b0son]

Originally Posted by buggo

That's the biggest personal risk.

So he's risking an obscene flapload of money, but getting a stupid flapload if he performs poorly... you have a very different view than I and many others if you consider that a risk.

I've no issue with performance-based remuneration. But noone has put forth a single compelling argument for a multi million dollar retainer.

[Wretched]

Originally Posted by b0son

So he's risking an obscene flapload of money, but getting a stupid flapload if he performs poorly... you have a very different view than I and many others if you consider that a risk.

I've no issue with performance-based remuneration. But noone has put forth a single compelling argument for a multi million dollar retainer.

Shareholders and boards essentially pay that money for the experience that CEO brings. They expect that individual to be able to leverage off that experience and drive their company into future profit, market expansion, etc.

Like any role, you're paid based on your negotiation, skills, what the market will pay and past experience. Like I asked in a previous post, would anyone here do the role for an average or their own salary? None of the perks or bonuses, but have to work the hours, do the travel, take the responsibilities, etc?

You can question a CEOs pay, but then we can also start looking at some of the pays in other roles and industries, people earning 6 figure sums for standing around literally doing nothing. Earning large pay rises, not because of performance but a collective. Do we get to question these too?

Seems to be a lot of tall poppy syndrome here, the green eyed monster pops up again. May be Australia should become a communist state, everyone paid the same and all drive the same car.

[buggo]

Originally Posted by b0son

So he's risking an obscene flapload of money, but getting a stupid flapload if he performs poorly... you have a very different view than I and many others if you consider that a risk.

I've no issue with performance-based remuneration. But noone has put forth a single compelling argument for a multi million dollar retainer.

He wasn't gifted his position, he's earned it. And with that comes a higher salary.
He doesn't get a 'stupid flapload of money' if he performs poorly, he loses his role and won't be able to find work in a similar position again. He also is liable to the shareholders if a decision he made results in their losses. He'd buy insurance against that though.

What's your argument against his retainer? If he asks for it, and the market thinks it's justified based on the fact he's got it, then I see no issue.

You can't possible think that he got here by chance, and that anyone lucky enough could do the same and earn the same in this apparent no-risk job.

[superyob]

There be unicorns telling fairy tales around Jimboomba...