ExxonMobil pays no federal tax on $41 billion profit; still refuses to pay for Alaska cleanup

Every hour, the world’s largest oil company makes $5 million in profits

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by Rebecca Leber
Climate Progress, January 31, 2012

ExxonMobil had the largest profits of the Big Five oil companies in 2011, raking in $41.1 billion for the year. This 35 percent jump from last year is driven in large part by record-high oil prices. Today, the oil giant announced its fourth quarter profits of $9.4 billion, a 2 percent increase since 2010.

Here are a few other facts about ExxonMobil:

• Exxon’s $41.1 billion in 2011 profit translates into nearly $5 million in profit every hour, or more than $1,300 every second. The annual profit comes near the record revenues of $46.23 billion in 2008.
• Stock buybacks for Q4 were $5.4 billion, and $ 21.60 billion for the year, equivalent to 53 percent of total 2011 profit. This enriches executives, the board of directors, and largest shareholders.
• Exxon pays a lower tax rate than the average American. Between 2008-2010, Exxon Mobil registered an average 17.6 percent federal effective corporate tax rate, while the average American paid a higher rate of 20.4 percent.  [In 2010, Mitt Romney paid an effective tax rate of 13.9%.]
• The company paid no taxes to the U.S. federal government in 2009, despite 45.2 billion record profits. It paid $15 billion in taxes, but none in federal income tax.
• The oil giant uses offshore subsidiaries in the Caribbean to avoid paying taxes in the United States.
• Exxon is sitting on $11 billion cash on hand as of September 30.
• Exxon spent nearly $13 million on lobbying expenditures in 2011. The company gave nearly another $900,000 in federal campaign contributions. 92 percent of contributions went to Republicans.
• Exxon CEO Rex Tillerson made $29 million in 2010 (according to the latest records): He made $2.2 million in salary, a $3.4 million bonus, and stock awards valued at $15.5 million.
• Exxon is drawing out a legal battle for damages on a spill from 22 years ago. Exxon hasn’t paid$92 million in cleanup for the devastating Valdez Alaskan oil spill. In its Sept. 30 court filing, Exxon argued the damages it agreed to pay only covers “restoration” and not additional “clean-up.”
• Far from a job creator, ExxonMobil — together with Chevron, Shell, and BP — reduced their U.S. workforce by 11,200 employees between 2005 and 2010.