Posted: 07/01/2025 11:37 am
Valero Energy Corporation (NYSE: VLO), a leader in the petroleum refining industry, is navigating a multifaceted landscape this year. Financial developments and market dynamics often form the headlines; however, there is growing interest in executive compensation, a crucial component of corporate governance and stakeholder interest.
In 2024, Eric A. Fisher, Senior Vice President of Product Supply, Trading, and Wholesale, was compensated a total of $3,679,705. This figure encompasses a base salary of $698,625, substantial stock awards valued at $2,029,759, incentive plan compensation of $834,630, and additional perks totaling $116,691. Remarkably, his bonus was reported as zero, highlighting a shift towards performance-based stock awards as a primary driver for executive compensation[1].
Looking back to 2022, Joseph W. Gorder, then Executive Chairman of the Board and former CEO, received a total package reaching $20,145,093. A significant portion of this came from stock awards of $12,363,244 and incentive-based compensation of $5,760,000. This substantial compensation package reflects the company's reliance on executive leadership to navigate challenging market conditions and strategically position itself for long-term growth[2].
Comparative data from earlier years reveals significant changes in compensation strategies. In 2006, S. Eugene Edwards earned a total of $1,919,748, which included a $350,000 bonus—a common practice then to reward immediate performance. Conversely, in 2004, Gregory C. King, the President, received $2,335,103, with over 40% attributed to bonuses, indicative of the corporate culture during that period[3][4].
As Valero progresses through 2025, its performance and strategic decisions continue to influence its corporate and market environment. Recently, Valero announced the pricing of a $650,000,000 notes offering aimed at refinancing existing debt, a move illustrating its commitment to strengthening its financial position in the long term[5]. Moreover, the Board of Directors approved an increase in the quarterly cash dividend, raising the annualized rate to $4.52 per share, rewarding shareholders despite fluctuating market conditions[6].
Despite recent market volatility affecting Valero’s stock, the company remains a strong player in the petroleum refining sector, boasting industry-leading operating margins[7]. It closed at $138.70 as of the latest trading, reflecting resilience amidst these challenges[8].
Valero's evolving approach to executive compensation reflects recognition of the need to align compensation with long-term strategic goals and shareholder value, rather than short-term immediate performance metrics, ensuring sustained leadership in a competitive and rapidly transforming industry.
:
1. "Eric A. Fisher, 2024 Compensation," Valero Energy Corporation SEC Archive.
2. "Joseph W. Gorder, 2022 Compensation," Valero Energy Corporation SEC Archive.
3. "S. Eugene Edwards, 2006 Compensation," Valero Energy Corporation SEC Archive.
4. "Gregory C. King, 2004 Compensation," Valero Energy Corporation SEC Archive.
5. "Valero Energy Corporation Announces Pricing of Notes Offering," Valero Energy Corporation Press Release.
6. "Valero Energy Increases Regular Cash Dividend," Valero Energy Corporation Press Release.
7. "Valero Energy: The Best Operating Margin In The Industry," Seeking Alpha.
8. "Valero Energy (VLO) Stock Falls Amid Market Uptick," Zacks.
