Thursday, September 5, 2019

Houston, Texas-Based Halliburton Company's Top-Tier Executives Average Pay Raise Was a Clean, Robust 14.3% Per Year During the Past Ten Years (2009-2018). But This Average Annual Pay Raise Balloons Up to an Off-the-Charts 59.1% Per Year During the Last Five Years of the George Bush/Dick Cheney US Presidency. Previously, Dick Cheney Was CEO of Halliburton, Where He Accumulated Much of His Wealth.

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 21st Texas Oil & Gas Company I am addressing here is Halliburton.

From annual compensation information contained in Company Proxy Statement filings with the US SEC, the chart below shows Halliburton's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the past 10 years.
  
Halliburton's Top-Tier Executives Average Pay Raise was a clean, robust 14.3% per year for the past ten years, which is tied for the 8th highest of the 21 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. Diamondback Energy +52.9% per year for the past seven years
  4. Energy Transfer Companies +19.2% per year for the past ten years 
  5. Enterprise Products Partners +16.2% per year for the past ten years
  6. ConocoPhillips +14.8% per year for the past ten years
  7. Pioneer Natural Resources +14.4% per year for the past ten years
  8. Halliburton +14.3% per year for the past ten years
  9. Occidental Petroleum +14.3% per year for the past ten years
  10. Western Gas Partners +13.3% per year for the past ten years
  11. The New Baker Hughes, a GE Company +12.2% per year for the past three years  
  12. Plains All America Pipeline +10.4% per year for the past ten years
  13. Valero Energy Corp +10.1% per year for the past ten years
  14. The Old Baker Hughes Inc +9.9% per year for eight years excluding Golden Parachutes Pay
  15. Schlumberger Limited +9.6% per year for the past ten years
  16. Apache Corp +8.4% per year for the past ten years
  17. Noble Energy Inc +6.5% per year for the past ten years
  18. Phillips 66 +5.4% per year for the past five years
  19. EOG Resources +5.1% per year for the past ten years
  20. Exxon Mobil +1.2% per year for the past ten years
  21. 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 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
Halliburton 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
Miller CEO     17,000     23,078     23,078       8,998       8,998       7,660       7,660     10,981     10,981       5,941
Loeffler CFO  N/A   N/A 
Brown Former President Western Hemisphere       8,336     14,149     14,149       7,059       7,059       5,957       5,957       7,400       7,400       6,947
Rainey President Eastern Hemisphere     10,975     13,995     13,995       8,447       8,447       7,226       7,226       9,347       9,347       7,959
Lesar Former Executive Chairman     17,453     38,624     38,624     17,847     17,847     15,871     15,871     20,560     20,560     20,865
Weber Former CFO  N/A   N/A 
McCollum Former CFO  N/A   N/A        5,182       4,469       4,469       9,163       9,163       5,746
 Totals      53,764     89,846     89,846     42,351     47,533     41,183     41,183     57,451     57,451     47,458
Annual % Change vs Prior Year -40.2% 112.1% 15.4% -28.3% 21.1%
5 Year Average Per Year % Change 16.0%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Halliburton 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
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
Miller CEO       5,941       6,604    
Brown Former President Western Hemisphere       6,947       5,800       5,800     10,204     10,204       3,689       3,689       3,313       3,313       5,935
Rainey President Eastern Hemisphere       7,959       3,852       3,852       5,825    
Lesar Former Executive Chairman     20,865     17,452     17,452     15,878     15,878     14,894     14,894     12,435     12,435     15,535
McCollum Former CFO       5,746       4,742       4,742       4,650       4,650       4,093       4,093       2,975       2,975       3,223
Probert President Strategy       5,571       4,374       4,374       3,182       2,991
Cornelison General Counsel       4,044       3,597       3,597       3,595
 Totals      47,458     38,450     37,417     40,931     35,106     25,858     29,711     22,320     22,320     28,288
Annual % Change vs Prior Year 23.4% -8.6% 35.8% 33.1% -21.1%
5 Year Average Per Year % Change 12.5%
10 Year Average Per Year % Change 14.3%

Also from annual compensation information contained in Company Proxy Statement filings with the US SEC, the chart below shows Halliburton's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the last five years of the George Bush/Dick Cheney Presidency.  For 2006 and 2005, the numbers disclosed are not prepared on a consistent basis and thus not comparable, therefore I excluded them below.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Halliburton 2008 2007 2007 2006 2006 2005 2005 2004 2004 2003
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
Brown Former President Western Hemisphere  N/A   N/A   N/C   N/C 
Lesar Former Executive Chairman     17,876     17,024     17,024     15,296  N/C   N/C      12,316     11,376     11,376       4,592
McCollum Former CFO       2,421       1,862       1,862       1,597  N/C   N/C        1,914          998
Cornelison General Counsel       3,990       3,501       3,501       3,255  N/C   N/C        3,799       2,914       2,914          845
Gaut President Drilling       4,756       4,205       4,205       3,495  N/C   N/C        3,910       3,053       3,053       1,269
Andrew Lane EVP COO     11,855       3,316  N/C   N/C        4,127       2,351
 Totals      29,043     26,592     38,447     26,959  N/C   N/C      26,066     20,692     17,343       6,706
Annual % Change vs Prior Year 9.2% 42.6%  N/C  26.0% 158.6%
4 Year Average Per Year % Change 59.1%






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