Monday, September 2, 2019

Houston, Texas-Based Natural Gas Transmission Company Kinder Morgan Inc's Top-Tier Executives Average Pay Raise Was a Completely Off-the-Charts 115.8% Per Year During the Past Ten Years (2009-2018)

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 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 9th Texas Oil & Gas Company I am addressing here is Kinder Morgan Inc.

From annual compensation information contained in Company Proxy Statement and S-1 filings with the US SEC, the chart at the bottom below shows Kinder Morgan Inc's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the past ten years.
  
Kinder Morgan Inc's Top-Tier Executives Average Pay Raise was a completely off-the-charts 115.8% per year for the past ten years, which is by far the highest of the 9 large Texas Oil & Gas Companies I have addressed so far.
  1. Kinder Martin +115.8% per year for the past ten years
  2. Enterprise Products Partners +16.2% per year for the past ten years
  3. ConocoPhillips +14.8% per year for the past ten years
  4. Occidental Petroleum +14.3% per year for the past ten years
  5. Schlumberger Limited +9.6% per year for the past ten years
  6. Phillips 66 +5.4% per year for the past five years
  7. EOG Resources +5.1% per year for the past ten years
  8. Exxon Mobil +1.2% per year for the past ten years
  9. 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.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Kinder Morgan Inc 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
Kean CEO     16,909          382          382          288          288       1,071       1,071       1,270       1,270     30,778
Dang President Former CFO       4,164       3,235       3,235       2,630       2,630       1,281       1,281       1,984       1,984     10,430
Sanders EVP       4,578       2,322       2,322       2,021    
Martin VP Pre Natural Gas Pipelines       2,826       2,281       2,281       1,285       1,285       1,747       1,747     10,430
Arenivas VP       2,397       1,684
Kinder Executive Chairman              0              0              0              0
DeVeau General Counsel       1,010       1,518       1,518       6,010
 Totals      25,651       5,939       8,765       7,220       7,596       5,321       4,647       6,519       6,519     57,648
Annual % Change vs Prior Year 331.9% 21.4% 42.8% -28.7% -88.7%
5 Year Average Per Year % Change 55.7%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Kinder Morgan Inc 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
Kean CEO     30,778       2,123       2,123       1,573       1,573       1,318       1,318       1,517       1,517       1,395
Dang President Former CFO     10,430       1,722       1,722       1,122       1,122          816          816          815          815          683
Martin VP President  Natural Gas Pipelines     10,430       1,772
Kinder Executive Chairman              0              0              0              0              0              0              0              0              0              0
DeVeau General Counsel  N/A   N/A 
Shaper President       2,173       1,873       1,873       1,358       1,358       1,567       1,567       1,445
Listengart General Counsel       1,322       1,057       1,057       1,191       1,191       1,144
 Totals      51,638       5,617       6,018       4,568       5,890       4,549       4,549       5,090       5,090       4,667
Annual % Change vs Prior Year 819.3% 31.7% 29.5% -10.6% 9.1%
5 Year Average Per Year % Change 175.8%
10 Year Average Per Year % Change 115.8%











Posted by at