WASHINGTON (Reuters) - Amid record oil prices and soaring gasoline costs, Exxon Mobil's $400 million retirement package to its former CEO is a "shameful display of greed" that should be reviewed by Congress and investigated by federal regulators, Democratic Sen. Byron Dorgan said on Tuesday.
Dorgan said he wants Exxon Mobil officials to appear at a Senate Commerce Committee hearing to explain how the corporation "justifies" giving its former boss, Lee Raymond, such a huge retirement package.
He also said the Securities and Exchange Commission should investigate the deal that "appears to shortchange" shareholders.
"There can be no more compelling evidence that the price gouging and market manipulation which has produced record oil prices is out of control, and is working to serve the forces of individual greed and corporate gluttony at the painful expense of millions of American consumers," Dorgan said.
Are gas prices high right now? Absolutely. Being on the road right now I've felt that impact more than a lot of people. Are these high gas prices any business of the government's? Absolutely not. Especially not if our government is interested in seeing our country end its dependence on oil any time soon.
According to Byron Dorgan our gas prices are too high and the government should do something (his proposal is the "windfall profits tax"). What Dorgan doesn't get is that making gas less expensive (which his "windfall profits tax" wouldn't do anyway, but that's a subject for another post) will only negatively influence a market that is likely headed away from oil thanks to the very high prices he is complaining about.
Making gasoline artificially cheaper through government regulation will only ensure that Americans go on using the substance. After all, if it is affordable why should they seek out alternative fuels? Heck, if its affordable why should they even bother to conserve it? The only thing that will ever cause this country to move away from its oil dependence is an oil price that is unsustainable. We are nearing that threshold now, and Dorgan is a fool to get in the way. Dorgan looks especially foolish when one stops to consider his support for ethanol.
Dorgan is strongly in favor of granting incentives to help grow the ethanol industry, yet what better incentive to move to ethanol is there than really expensive oil?
Exxon and other oil companies will continue to charge high prices for gasoline at their own risk, and they can (and should) compensate their employees - up to and including the CEO - at any level they wish. They are a private enterprise and should manage their business in the manner they feel is best without interference from pandering, meddling politicians like Byron Dorgan. As I stated before, if gas prices remain at an unsustainable level (and I think we're near that now) America will look to fill its energy needs in another, hopefully cheaper, manner. If gas prices come back down Americans will likely continue to use gasoline.
But regardless, whatever happens shouldn't be the result of Byron Dorgan sticking his nose in where it doesn't belong.