Phillips 66 is one of the most prominent integrated downstream energy companies in the world. It specializes in refining, marketing, and transportation of petroleum products, and it plays a vital role in the global energy sector. At the helm of this industry giant is Mark Lashier, the Chairman and CEO, whose leadership and extensive experience have contributed significantly to the company’s success. In this blog, we will explore Mark Lashier’s salary, net worth, and key details about his career.
Who Is Mark Lashier?
Mark Lashier is a seasoned chemical engineer with over 30 years of experience in executive leadership roles within the energy and petrochemical industries. He became the CEO of Phillips 66 in July 2022, succeeding Greg Garland. Under his leadership, Phillips 66 has continued to grow as a leading energy provider.
Professional Background
Lashier’s career is marked by significant achievements and contributions to the energy sector:
Previous Roles at Phillips 66:
- Before becoming CEO, Lashier served as President and CEO of Phillips 66. His leadership ensured the company maintained its competitive edge in the downstream energy market.
Chevron Phillips Chemical Company (CPChem):
- Lashier was the President and CEO of CPChem, a joint venture between Phillips 66 and Chevron. During his tenure, he held various leadership positions, including:
- Executive Vice President of Olefins and Polyolefins
- Senior Vice President of Specialties, Aromatics, and Styrenics
- Vice President of Corporate Planning and Development
Early Career:
- Lashier started his journey as an Associate Research Engineer at Phillips Petroleum. His technical expertise laid the foundation for his rise to executive leadership.
Board Memberships and Industry Contributions
Mark Lashier is actively involved in various industry organizations and community initiatives. He serves on the boards of groups like:
- American Fuel and Petrochemical Manufacturers
- Greater Houston Partnership
- Junior Achievement of Southeast Texas
- American Cancer Society’s CEOs Against Cancer
- MD Anderson Board of Visitors
- Barbara Bush Houston Literacy Foundation
He is also part of the executive committee of the American Petroleum Institute and contributes to the National Petroleum Council.
Education and Achievements
- Lashier holds a Bachelor of Science and a doctorate in chemical engineering from Iowa State University.
- He is an innovator with 13 U.S. patents, reflecting his technical expertise and contributions to the petrochemical industry.
Phillips 66 CEO Salary Breakdown
Mark Lashier’s earnings as CEO of Phillips 66 are substantial, reflecting his leadership role and the company’s competitive compensation practices. Here’s a detailed breakdown of his salary components:
1. Base Salary
Mark Lashier earns a base salary of $1,683,333 annually, which accounts for about 7.5% of his total compensation. This fixed salary ensures financial stability and is competitive within the energy industry.
2. Performance Bonuses and Stock Options
A significant portion of Lashier’s earnings comes from performance-based bonuses and stock awards. In 2023:
- He received $16,016,443 in stock awards, which make up 92.5% of his total compensation.
- These rewards are tied to Phillips 66’s financial performance and shareholder value, incentivizing effective leadership.
3. Other Compensation
Lashier’s compensation package includes additional perks and benefits, such as:
- Retirement plans
- Travel allowances
- Health insurance
- Miscellaneous benefits, valued at $117,300
Mark Lashier’s Net Worth
Mark Lashier’s net worth is estimated to be multi-million dollars, thanks to his salary, stock awards, and investments. His earnings reflect his long tenure in executive roles and his contributions to the energy sector.
Key Factors Contributing to Net Worth
Salary and Bonuses:
- Lashier’s annual compensation of $22.59 million significantly boosts his net worth.
Stock Holdings:
- Lashier directly owns 0.009% of Phillips 66 shares, valued at approximately $4.75 million.
Investments and Assets:
- Lashier’s diversified investments, including real estate and other assets, contribute to his wealth.
CEO Pay Ratio and Employee Compensation
Mark Lashier’s pay ratio is 132 times the median employee’s salary at Phillips 66. This ratio highlights the disparity between executive and employee earnings, which is common in large corporations.
Comparison with Previous CEO Greg Garland
- Greg Garland’s Total Compensation (2012–2021): $201,157,065 over nine years.
- Mark Lashier’s Annual Compensation: $22.59 million.
While Lashier’s earnings are significant, they are aligned with industry standards for CEOs of energy companies.
Comparison with Other Energy CEOs
To understand Mark Lashier’s salary in context, let’s compare his earnings with CEOs of competitors:
- ExxonMobil CEO Darren Woods: Earned $35.9 million in 2022.
- Chevron CEO Mike Wirth: Received $24.6 million in total compensation.
- BP CEO Bernard Looney: Earned $11.7 million in 2022.
Lashier’s salary is competitive but slightly lower than ExxonMobil and Chevron CEOs, reflecting Phillips 66’s market position and financial performance.
Phillips 66 Financial Performance
Phillips 66’s financial performance plays a critical role in determining CEO pay. The company’s market capitalization of $62 billion underscores its strength in the energy sector.
Revenue Growth and Profitability
Under Lashier’s leadership, Phillips 66 has maintained steady revenue growth and profitability, ensuring competitive compensation for executives and dividends for shareholders.
Public Opinion on CEO Salaries
CEO salaries often spark debate. Critics argue that executive pay is excessive compared to employee wages, while supporters believe high compensation is justified by the level of responsibility and expertise required for the role.
Phillips 66’s Approach to Compensation
Phillips 66 ensures fair salary distribution and ties executive pay to company performance. Lashier’s compensation reflects his contributions to the company’s success and aligns with shareholder expectations.
Historical CEO Compensation at Phillips 66
Greg Garland (2012–2021):
- Total compensation of $201,157,065 over nine years. Garland’s earnings included significant stock awards and bonuses tied to Phillips 66’s growth.
Mark Lashier (2022–Present):
- Annual compensation of $22.59 million, emphasizing performance-based incentives.
Why Are CEO Salaries So High?
CEO salaries include multiple components, such as base pay, bonuses, and stock options. Here are the factors influencing executive compensation:
1. Leadership Responsibility
CEOs are responsible for the overall success of the company, including financial performance, strategic direction, and employee management.
2. Shareholder Expectations
High pay is tied to performance-based goals. Lashier’s compensation reflects Phillips 66’s profitability and his ability to deliver value to shareholders.
3. Market Competition
Competitive salaries are necessary to attract and retain top talent in the industry. Lashier’s expertise and long tenure make him a valuable asset to Phillips 66.
Conclusion
Mark Lashier’s salary and net worth reflect his leadership role in one of the world’s largest energy companies. With an annual compensation of $22.59 million, Lashier is rewarded for his expertise and contributions to Phillips 66’s success. His earnings align with industry standards and shareholder expectations, ensuring transparency and fairness in executive pay.
This blog provides detailed insights into Lashier’s earnings and the factors influencing CEO pay, ensuring readers have accurate and up-to-date information. For those seeking transparency in corporate leadership, this post highlights the importance of fair compensation and accountability.
FAQs
- What is Mark Lashier’s annual salary as Phillips 66 CEO?
Mark Lashier earns a base salary of $1,683,333, supplemented by bonuses and stock awards.
- How much is Mark Lashier’s net worth?
Lashier’s net worth is estimated to be in the multi-million-dollar range, thanks to his earnings and investments.
- How does Phillips 66 CEO salary compare to other energy CEOs?
Lashier’s salary is competitive but slightly lower than ExxonMobil and Chevron CEOs.
- What factors determine a CEO’s compensation package?
CEO pay is influenced by company performance, shareholder expectations, and market competition.
- Does Phillips 66’s financial performance affect CEO pay?
Yes, Lashier’s bonuses and stock awards are tied to Phillips 66’s profitability and growth.