This Houston energy company is giving every one of its 1,400 employees a US$100,000 b


#1

This Houston energy company is giving every one of its 1,400 employees a US$100,000 bonus | Financial Post

God I love Texas. They do business the right way.


#2

I doubt that this is a wise move. More like the CEO that raised everyone’s wages to a ridiculous amount, followed by the folding of the company.


#3

Try to remember that one’s Social Security upon retirement is based on one’s SALARY and therefore contribution level. By doing what he did (Raising employee’s salaries to $70K) that guy knew that those salaries would be reflected in the employees’ SS checks when they retire, now or in the future. It was NOT responsible for the company “folding” but that CEO probably knew that it WOULD fold and offered a modicum of protection for his employees afterwards.


#4

This was for successful target reaching, a one time bonus, different from a permanent increase in salaries. When a business does well and rewards employees, they have employees who work hard for life.


#5

I know what a bonus is, I’ve had a few of them myself, and some of them were pretty good sized. But I never had one over 4 digits.


#6

Neither have I, but you need to remember that it was YOU who pooh-poohed the idea as equivalent to paying everyone $70K in salary and implied that was an “unwise move” and might presage the company’s collapse.


#7

I didn’t imply - or didn’t intend to imply - that it was the same. But giving all employees such massive bonuses sounds - well, strange to say the least, and possibly irresponsible. If - as it seems likely - the business had been doing extremely well for a long time, several increases in salary over a period of years would have made more sense - and wouldn’t put as big a tax burden on the employees.


#8

Yes, the business has been doing extremely well over a long time. From the article:

It’s not the first time Hilcorp’s billionaire CEO and founder Jeffery Hildebrand has rewarded his employees in a big way. In 2010, every employee had the choice of either a $50,000 car or $35,000 cash for reaching the company’s previous five-year goals, according to Fortune, which ranked Hilcorp No. 20 on its “Best Companies to Work For” list.

Sounds to me like they know what they’re doing.

I’m tickled pink to hear of a business doing so well that it affords them the ability to be so generous w/their profits. And that they are.
The line of applicants must reach around the block six times!


#9

On the opposite end of the spectrum one can say the company charges a pretty hefty amount of money over what market values would be. Now this is without knowing if there is competition and no price fixing.

Around here we are always getting letters or phone calls wanting us to switch to them. If that is not enough the township switches our electric company and in the end we still pay the higher rate.

The gas company supposedly sends letters talking about plans to save money and from what I have found people end up paying more.


#10

Hm. Now I’m a little confused. The article describes Hilcorp as an “oil and gas exploration and production company.” I didn’t realize they were also a supplier to individuals.

Are you saying that Hilcorp is gouging its customers?


#11

[quote=“2cent, post:10, topic:47951”]
Hm. Now I’m a little confused. The article describes Hilcorp as an “oil and gas exploration and production company.” I didn’t realize they were also a supplier to individuals.

Are you saying that Hilcorp is gouging its customers?
[/quote]I do mot really know but reading the article the thought crossed my mind that the company seems to have extraordinary profits so I wondered where they came from. Then again there was that oil executive who retired and it was reported they gave him $400,000 in a retirement package.

Oil: Exxon Chairman’s $400 Million Parachute - ABC News


#12

It appears that they just explore and produce.
CEO Message | Hilcorp

I don’t know that they’re capable of price fixing, but ALL profits come from the ability to sell a product. Personally, I’d LOVE to go work for Hilcorp.

I think I must be missing something here 'cuz I don’t much care where a business spends its profits, and applaud those who can manage a big 'un. And if Exxon decided to give somebody a $400,000 severance package, so what? It’s no skin off my nose.

I don’t ‘get’ the consternation.


#13

Okay, I’ll put it the way I wanted to the first time, but wimped out.

Between doubting it was “a wise move,” and, “possibly irresponsible,” you sound like a liberal who thinks people don’t know better what to do w/their own money - with a ting of class envy thrown in.

Furthermore, I’d far prefer to pay 25% of $100,000.00 all at once, rather than have the business hand it out in bits and pieces. Besides which, that’s $1.4 million the company doesn’t have to pay taxes on.

And besides, besides… the POINT of a bonus is to thank employees for helping the company meet a 5-year goal.

Hardly unwise. They now have nearly 1400 very loyal employees who’ll work their butts off for the company, along with (most likely) a list of the crème of the crop to choose from in future employees.

VERY smart, if you ask me.


#14

[quote=“samspade, post:11, topic:47951”]
I do mot really know but reading the article the thought crossed my mind that the company seems to have extraordinary profits so I wondered where they came from. Then again there was that oil executive who retired and it was reported they gave him $400,000 in a retirement package.

Oil: Exxon Chairman’s $400 Million Parachute - ABC News
[/quote] I don’t CARE where they got their profits any more than I care how they spend them. NO industry is more highly regulated than the oil and gas industry. NONE. So the chances that they are “price-gouging” or “price-fixing” are vanishingly small.


#15

I’ll admit that I didn’t really ‘get’ that “price fixing,” either. Some cities, etc., will ‘price fix’, telling a utility company how much they may or may not charge, but not the other way around, and I rarely hear of it benefiting the utility company.

In any case, $1.4 million isn’t all that much to talk about when it comes to the oil industry. (Obviously, just part of Hilcorp’s profits.) They have a product that is high in demand, and work darn hard - with a lot of smarts - to earn it.

I don’t begrudge them a bit.


#16

The Oil Companies are the good guys, good guys usually treat their employees very well and have sharp enough pencils to know how much of their available resources can be safely used as discretionary spending.

As always, I support their decision and have complete confidence that the fuel I need will continue to be readily available when I need it at a competitive price; my family depends on the Oil Companies being 100% successful 100% of the time and they have never let us down.

The government on the other hand has the polar opposite reputation, the vast majority of what I struggle with to stay viable emanates from government; not my competition or my fuel suppliers.


#17

Then I think you mischaracterize her; and I’m unclear on what basis you claim.


#18

I never did understand animosity towards oil developers. They’re the very people who make near everything we do possible.

Local companies, and what they do sometimes, is clearly understandable what would irritate customers. But the companies that do the exploring and production of gas and oil? I do not.


#19

Suz’s very own words.


#20

BTW, 1400 times $100,000 is 140 MILLION DOLLARS…not $1.4 million. However, that doesn’t matter one whit as to whether or not the company “should” or “should not” settle that much money on its employees. I’d LOVE to work for such a company–and would go out of retirement to work for these guys in a heartbeat.