Sunday, September 8, 2019

Dallas, Texas-Based Natural Gas Transmission Company Enlink Midstream LLC's Top-Tier Executives Average Pay Raise Was a Very Clean, Blistering 35.7% Per Year During the Past Seven Years (2012-2018) That Top-Tier Executive Compensation Was Disclosed in Its SEC Filings

The third Democratic 2020 Presidential candidate televised debate will be held in Houston, Texas on September 12, 2019.  Texas is also the home state of Julian Castro and Beto O'Rourke, who have both gained significant momentum in the past month.

The key issue to Texas citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of large Texas Companies were rewarded with in the past ten years.  I completed my study of large Texas Non-Oil &  Companies and now I have started studying large Texas Oil & Gas Companies. 

The 31st Texas Oil & Gas Company I am addressing here is Enlink Midstream LLC.

From annual compensation information contained in Company 10-K filings with the US SEC, the chart at the very bottom below shows Enlink Midstream LLC's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment in the past seven years that this information was disclosed.
  
Enlink Midstream's Top-Tier Executives Average Pay Raise was a very clean, blistering 35.7% per year for these past seven years, which is the 6th highest of the 31 large Texas Oil & Gas Companies I have addressed so far.
  1. Cheniere Energy Inc +141.9% per year for the past ten years
  2. Kinder Martin +115.8% per year for the past ten years
  3. Parsley Energy +72.8% per year for the past six years.
  4. Diamondback Energy +52.9% per year for the past seven years
  5. Targa Resources +46.9% per year for the past ten years
  6. Enlink Midstream +35.7% per year for the past seven years
  7. Concho Resources +31.2% per year for the past ten years
  8. Marathon Oil +23.3% per year for the past ten years
  9. Energy Transfer Companies +19.2% per year for the past ten years 
  10. FMC Technologies +17.1% per year for seven years
  11. Spectra Energy Corp +16.4% per year for seven years
  12. Enterprise Products Partners +16.2% per year for the past ten years
  13. ConocoPhillips +14.8% per year for the past ten years
  14. Pioneer Natural Resources +14.4% per year for the past ten years
  15. Halliburton +14.3% per year for the past ten years
  16. Occidental Petroleum +14.3% per year for the past ten years
  17. Western Gas Partners +13.3% per year for the past ten years
  18. National Oilwell Varco+13.1% per year for the past ten years
  19. The New Baker Hughes, a GE Company +12.2% per year for the past three years  
  20. HollyFrontier Corp +11.2% per year for the past ten years.
  21. Plains All America Pipeline +10.4% per year for the past ten years
  22. Cabot Oil & Gas +10.3% per year for the past ten years
  23. Valero Energy Corp +10.1% per year for the past ten years
  24. The Old Baker Hughes Inc +9.9% per year for eight years excluding Golden Parachutes Pay
  25. Schlumberger Limited +9.6% per year for the past ten years
  26. Apache Corp +8.4% per year for the past ten years
  27. Noble Energy Inc +6.5% per year for the past ten years
  28. Phillips 66 +5.4% per year for the past five years
  29. EOG Resources +5.1% per year for the past ten years
  30. Exxon Mobil +1.2% per year for the past ten years
  31. Anadarko Petroleum +1.1% per year for the past ten years
There have been many US Government laws enacted in the past two decades that have substantially increased income inequality expansion, but none more so than the Trump Tax Cuts Act.   

On the other hand, the only highly effective US Government law enacted by either party in the past two decades that has substantially reduced income inequality expansion is Obamacare.

My objective is to get a better handle on just why the US and particularly here Texas has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages for the executives of a Company vs the many non-executive employees of a Company, coupled with the stock price appreciation subsequent to the time the company executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

Further, the US Government should ban Golden Parachutes.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
EnLink Midstream 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Garberding CEO     10,358       3,544       3,544       4,665       4,665       3,094       3,094       5,173       5,173       2,204
Lamb COO       6,089       2,396       2,396       2,962       2,962       2,304    
Barry Davis Executive Chairman of the Board       5,933       6,753       6,753       4,379       4,379       5,226       5,226       9,671       9,671       2,893
Hummel EVP  N/A   N/A        2,704       2,025       2,025       2,464  N/A   N/A     
Happe       2,221       2,024       2,024       2,408  N/A   N/A     
Golemon SVP       2,598       1,053
 Totals      22,380     12,693     17,618     16,055     16,055     15,496       8,320     14,844     17,442       6,150
Annual % Change vs Prior Year 76.3% 9.7% 3.6% -44.0% 183.6%
5 Year Average Per Year % Change 45.9%
FYE FYE FYE FYE
Dec Dec Dec Dec
Texas Company 2013 2012 2012 2011
Top-Tier Total Total Total Total
Executive Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s
Garberding CEO       2,204       1,210       1,210       1,391
Lamb COO
Barry Davis Executive Chairman of the Board       2,893       2,498       2,498       2,621
Hummel EVP
Happe
Golemon SVP       1,053          997        
Joe Davis General Counsel       1,471       1,295       1,295       1,324
 Totals        7,621       6,000       5,003       5,336
Annual % Change vs Prior Year 27.0% -6.2%
2 Year Average Per Year % Change 10.4%
7 Year Average Per Year % Change 35.7%



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