Cramer: Does XTO’s CEO Deserve $171 Million?
Executive compensation this year has been a touchy subject in the US, one that easily incites populist rage. Well, now The Wall Street Journal is reporting that XTO Energy Chairman Bob Simpson will receive about $171 million when his company is sold to Exxon Mobil. Should we be outraged?
Cramer during Monday’s Stop Trading! said no. In fact, he wanted to know why Simpson, who co-founded XTO and helped grow the business over these many years, isn’t getting even more money. Cramer called the deal with Exxon “the capstone of an unbelievable career,” saying Simpson “has created more value than anyone else I can recall in my life other than maybe Warren Buffett.”
Cramer emphasized the difference between managers with outsized salaries and bonuses whose companies nearly collapse or fail completely and those who deliver for shareholders. Simpson stands in the latter category, the Mad Money host said.
“If you went along for the ride with him,” Cramer said, “believe me, you don’t care if he gets $500 million.”
Also, Cramer seemed to shrug off news of a rival handset to Apple’s iPhone, namely Google’s Nexus smartphone. While many US users have been upset with AT&T, the iPhone’s sole carrier here, for dropped calls and a slow network, an Apple deal with another carrier, say Verizon Communications , would solve the problem. Also, the iPhone is an international business, Cramer said, meaning its revenues aren’t limited to the States. And he continues to think the handset will dominate the competition.
“This is the iPod of the future,” Cramer said of the iPhone, “in terms of market share.”
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