Exxon's Over Compensation

The Exxon Valdez sits on Bligh Reef in Prince William Sound, Alaska, after the giant tanker ran aground in March 1989, spilling 11 million gallons of crude oil. (AP) Quote: Ten years ago, a jury ordered Exxon to pay what now amounts to $6.5 billion for damage to the fishing industry. While many fishermen have gone bankrupt, the case remains tied up in appeals and Exxon hasn't paid a penny.   (Click here for source document.)

AP Photo: Exxon Mobil Corp. Chairman and CEO Lee Raymond is shown in this May 2005 file photo. Under Mr. Raymond, the company's market value increased fourfold to $375 billion, overtaking BP as the largest oil company and General Electric as the largest American corporation. For his efforts, Raymond, who retired in December, was compensated more than $686 million from 1993 to 2005, according to an analysis done for The New York Times by Brian Foley, an independent compensation consultant. That is $144,573 for each day he spent leading Exxon's 'God pod,' as the executive suite at the company's headquarters in Irving, Tex., is known. (AP Photo/Donna McWilliam)   (Click here for source document.)

Consider this argument Exxon is making in order to get out of paying local fishermen for damages:

Exxon disputes reports that the remaining oil is still causing harm to the environment.

"Quite frankly we're not surprised the oil is still there in many ways," says Dr. Frank Sprow, Exxon's vice president of Safety, Health and Environment. "That's a good sign - it shows the oil hasn't migrated out and had the potential to do damage."

To me, this says:

• they've known from the very beginning that they did not get all the oil ("Quite frankly we're not surprised"),
• they've acknowledge that their oil is still not completely cleaned up ("the oil is still there"),
• they've deliberately tried to deceive the public with spin ("That's a good sign - it shows the oil hasn't migrated out"), and 
• they've recognized and admitted that oil contamination is harmful to the environment ("the potential to do damage").

How can Exxon continue to dispute reports that the remaining oil is still causing harm to the environment when their own vice president of Safety, Health and Environment has publicly acknowledged the very evidence proving the existence of environmental damage? So, while Exxon basks in the windfall profits of the last couple of years, it would be best if they would also take care of their financial responsibilities, too. The last time I looked, the ship that poured all that oil into Prince William Sound was owned by the Exxon company. Being in the oil business means they're responsible for all the oil that comes out of their ships, by accident or not.