NC system flexes shareholder muscle on executive pay

Five members of the Exxon board of directors are losing the support of a major institutional investor.

The North Carolina retirement system, which is managed by the state treasurer's office, is taking this action to make known its displeasure regarding Exxon's executive pay practices.

Grabbing on to an issue popular among voters, [State Treasurer Richard Moore] said the North Carolina retirement system will refuse to support the re-election of the directors who have served on the board's compensation committee. The system owns 11 million shares of Exxon Mobil stock valued at $663-million (U.S.). The company's annual meeting is today in Dallas.

Congress and the public have complained about a nearly $400-million retirement package given recently to the energy giant's former chairman, Lee Raymond.

"As shareholders, we are outraged that executives are using soaring gas prices, which are hitting consumers at the pump, to fatten their own wallets," Mr. Moore said. "The excessive pay packages, like that seen at Exxon Mobil, diminish shareholder value and are evidence of policies that fail to generate long-term value for shareholders."

Exxon Mobil didn't immediately return a phone call yesterday seeking comment.

Exxon shares represent the North Carolina retirement system's largest single block of holdings.