DEVELOPING:

Manhunt for Clark County stabbing person of interest

Speedway parent CEO makes 935 times as much as his employee median


The median annual salary for employees of Marathon Petroleum Corp. in 2017 was $21,034, Marathon’s annual proxy statement says.

That means the company’s chief executive, Gary Heminger, with a total annual compensation of $19,670,807, makes 935 times as much as the median pay of his employees, the proxy also said.

Enon-based Speedway LLC is part of Findlay-based Marathon.

RELATEDTeradata CEO makes 137 times as much as his employee median 

In its proxy, filed earlier this month with the Securities and Exchange Commission, Marathon sought to put its CEO-employee pay ratio in perspective.

“We expect our ratio of 935:1 may be relatively high when compared to other domestic U.S. refiners,” Marathon said. “This expected difference is largely due to our substantial retail operations (more than 2,700 stores), staffed by approximately 32,000 employees, many of whom are part-time employees.

MORE: Investors want a new CEO at Gibson guitars

“Marathon Petroleum is the only entirely domestic downstream refining company with such a substantial retail presence,” the company said. “As our retail operations rely on a large labor pool of retail employees who work fewer hours and are compensated at lower levels, on a relative basis, than employees working in traditional downstream refining jobs, we would not expect our median employee to be similar in terms of job function or compensation level to the median employee of other domestic U.S. refiners.

“Investors and other stakeholders should take this important difference into account when making comparisons of our CEO pay ratio to those of our peer companies,” the company concluded.

An “independent” pay ratio for Marathon only is very different, the company also said.

The median Marathon employee total annual compensation, excluding Speedway workers, is 156:1, Marathon said.

MORE: Mikesell’s must pay $240,000 in back-pay, feds say

Publicly-traded U.S. companies like Marathon are required to pull back the curtain on the pay difference between top executives and their workers. Sometimes those pay differences can be quite stark. AT&T’s workers saw a median salary of $78,437 last year, and Randall Stephenson, that company’s CEO, earned 366 times as much as his employees, the Dallas Morning News recently reported.

The CEO of another Dayton-region company — Teradata’s Victor Lund — makes 137 times as much as his employee median, Teradata’s proxy reveals.

The pay ratio disclosure requirement is one of the transparency measures in the post-financial crisis Dodd-Frank legislation in 2010.

2017 was a good year for both Marathon and Speedway As an operating segment of Marathon, Speedway had income of $732 million.

For Marathon as a whole, 2017 earnings were $3.43 billion, or $6.70 per diluted share, well above the $1.17 billion, or $2.21 per diluted share, for 2016, Marathon said.



Reader Comments ...


Next Up in Business

Ohio thieves target these vehicles more than any other
Ohio thieves target these vehicles more than any other

The National Insurance Crime Bureau has released its annual “Hot Wheels” report, identifying the 10 most stolen vehicles in the United States — and in Ohio. The report examines vehicle theft data submitted by law enforcement to the National Crime Information Center and determines the vehicle make, model and model year most reported...
The stage is set: UD ready for first gubernatorial debate tonight
The stage is set: UD ready for first gubernatorial debate tonight

After years of discussions and weeks of work, now it comes down to just a few hours: The University of Dayton will host the first 2018 Ohio gubernatorial debate tonight at Daniel J. Curran Place. Eric Spina, UD president, sounded a confident note this morning, saying the university community is ready. “For many years, we have been letting folks...
Health care a top ballot box concern for older Ohioans
Health care a top ballot box concern for older Ohioans

The majority of Ohioans over the age of 50 say concerns about health care will affect their vote this fall. About 81 percent said health care is a “very important” issue when it comes to their vote for Congressional candidates this fall. About 80 percent said Social Security is a very important issue and 76 percent said Medicare is, according...
760-mph hyperloop from Ohio to Chicago moves closer with new regulations
760-mph hyperloop from Ohio to Chicago moves closer with new regulations

An exceptionally fast transportation system may be a step closer to Ohio. Hyperloop Transportation Technologies (HyperloopTT) and German insurance company Munich Re said Monday that a set of core safety requirements and certification guidelines for the fledgling mode of transportation have been created. The hyperloop is expected to transport pods of...
A ‘clean’ meatloaf

Dear Heloise: I have a pretty good hint: When you MAKE MEATLOAF, the cleanup is a pain in the you-know-where. I spray the pan with any kind of cooking spray, then line it with foil. When you take the meatloaf out of the pan, there is very little cleanup. — Linda W., Bakersfield, Calif. ‘lettuce’ explain Dear Heloise: I buy iceberg...
More Stories