Exxon Mobil Corp. (XOM)’s costs for Chairman and Chief Executive Officer Rex Tillerson’s personal use of company-owned aircraft increased sixfold in 2011, according to a U.S. regulatory filing.
Tillerson’s personal use of company planes cost $197,323 last year, compared with $29,409 in 2010, Irving, Texas-based Exxon said today in a U.S. Securities and Exchange Commission filing. The expense was included in executive compensation disclosures that showed Tillerson’s total compensation rose 17 percent to $34.9 million in 2011, including stock awards and deferred compensation.
The increase in costs associated with Tillerson’s personal use of company planes stemmed in part from escalating fuel prices and maintenance expenses, as well as more trips, Alan Jeffers, an Exxon spokesman, said today in a telephone interview.
“For security reasons, the board requires the chairman and CEO to use company aircraft for both personal and business travel,” Exxon said in the filing. The board “considers these costs to be necessary, security-related expenses rather than perquisites, but per the disclosure regulations we report the incremental cost of aircraft usage for personal travel.”
Exxon rose 16 percent in New York last year as civil conflicts in North Africa and the Middle East helped push Brent crude prices to a full-year average above $110 a barrel. Profit for 2011 jumped 35 percent to $41.1 billion.
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