Exxon Mobil Corporation XOM has reportedly implemented a novel compensation policy, offering cash bonuses to certain traders, marking a substantial shift for the U.S. energy giant as it seeks to broaden its trading operations.
Exxon Mobil has recently introduced a new internal policy, dividing traders into two groups: system traders, who deal in physical commodities to support company operations, and risk-taking traders focused on enhancing company profits, Bloomberg reported.
Only the latter group will qualify for performance bonuses. These bonuses, exclusively in cash, are set to be disbursed from December 2024, the report noted, citing people familiar with the matter.
Also Read: Exxon Mobil Is This Analyst's Top Pick, Citing Premium Valuation Relative To Peers
Previously, Exxon compensated traders with regular salaries supplemented by modest stock awards for top performers.
This approach, however, has proven unsatisfactory for new hires who are used to receiving substantial cash bonuses linked to performance, a standard practice in the industry, the Bloomberg report read.
"We strive to deliver competitive pay that will attract, reward and retain talented employees in support of the company's business objectives," said Exxon spokesperson Emily Mir, as per Bloomberg.
"Specific to select trader job roles, our compensation program is directly informed by company results, global trading results and individual performance," Mir added.
Price Action: XOM shares are trading lower by 0.14% to $97.94 on the last check Wednesday.
Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
