Employee Pay Rises in Oil Sector -- WSJ
April 25 2019 - 3:02AM
Dow Jones News
By Patrick Thomas
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 25, 2019).
It was a fruitful year for the rank and file at oil-and-gas
companies, from Exxon Mobil Corp. to Phillips 66.
Oil-and-gas drillers and refiners had some of the highest-paid
median workers in the energy and utility sectors in 2018, according
to The Wall Street Journal analysis of annual pay disclosures for
hundreds of big U.S. companies as provided by MyLogIQ.
Houston-based Phillips 66 paid its median worker $196,407, the
highest of any company in the sector.
Phillips was followed by Anadarko Petroleum Corp. at
$183,445.
Oil giant Exxon Mobil, which has roughly 72,600 employees,
according to its latest proxy, had the third-highest median worker
pay with $171,375.
Phillips 66 and Anadarko both boosted their 2018 median pay by
about 15% in 2018 compared with 2017. Exxon raised its median pay
about 6%.
Oil-and-gas companies typically pay their workers better than
many other sectors because they have fewer low-paid retail jobs and
must compete in a tight labor market driven in part by the
shale-oil boom.
Phillips 66 and Exxon declined to comment beyond their proxy
statements. Anadarko Petroleum didn't respond to requests for
comment.
Utility companies, such as Xcel Energy Inc. and American
Electric Power Co., were closer to the energy-and-utility sector's
median of about $117,000, the highest median of any sector in the
S&P 500.
An American Electric Power spokeswoman said its compensation
plan takes into account employee performance and that the company
compares its pay levels to its peers'. Xcel Energy didn't respond
to requests for comment.
The lowest-paid median employee in the energy sector worked at
Marathon Petroleum Corp., earning $27,703.
Unlike other oil-and-gas producers, Marathon operates roughly
3,900 Speedway convenience stores with about 40,000 employees, most
of whom are part-time and work lower-wage jobs, according to
Marathon's latest proxy filing.
Without Speedway, Marathon's median worker pay is $167,607,
according to its proxy filing. The company claims in its filing
that it is the only domestic downstream refining company with a
substantial retail presence.
The second- and third-lowest median worker pays were at
energy-equipment and -services companies National Oilwell Varco
Inc., at $51,917, and TechnipFMC PLC, at $59,634.
In its latest proxy filing, TechnipFMC said only about 17% of
its employees are based in the U.S. Service and equipment companies
typically had larger manufacturing workforces and paid less than
companies that extract oil and gas.
TechnipFMC and National Oilwell Varco both declined to comment
beyond their proxy statements.
Most publicly traded firms are disclosing their median employee
pay for a second straight year, along with compensation for top
executives.
Firms are asked to include part-time and temporary workers, but
not contractors, and have the option of giving annual pay for some
midyear hires.
Companies may exclude up to 5% of their global workforce, but
only non-U. S. workers, and may use sampling techniques to identify
the median employee.
The Journal analysis, which includes more than 1,300 companies,
combined the energy and utility sectors as defined by S&P
Global.
Those sectors include industry groups encompassing oil, gas and
consumable fuels, electric utilities, multiutilities, and energy
equipment and services.
Check out this interactive link for the full ranking of
companies or to search for a specific company or industry.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
April 25, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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