A new study has found that top oil and gas executives receive massive bonuses for making decisions that ultimately have negative effects on the environment, reported AllGov.com.
The Institute for Policy Studies (IPS) found that presidents, CEOs, and other top executives at the 30 largest energy companies still receive handsome compensation even when the company does poorly. The practice eliminates virtually any incentive for these top-ranking executives to make the companies better.
Thinking about the short-term is a dangerous practice committed by thousands of companies in America, regardless of the industry. However, there is more danger and impact when a large fossil fuel company refuses to think about long-term events.
“One reason why our fossil fuel industries are so stuck and on this destructive path is because of the short-term and perverse executive pay structures,” said Sarah Anderson, IPS’s Global Economy Project director. “All of the incentives are in place for them to think short-term and to stick with business as usual.”
For example, ExxonMobil CEO Rex Tillerson made $33 million last year, and $21.4 million of that was from stock-based compensation. The company continues to drill and endanger hundreds of delicate habitats across the world. The most recent endeavor is deep-drilling in the Arctic.
It’s “business as usual” for the fossil fuel industry because they have no reason to improve the measures in which they operate. Even in the event of a deadly oil spill, CEOs will still get bonuses.