"Exxon Will Pay Some Oil Traders Cash Bonuses In Expansion Plan; Risk-Taking Traders Will Receive Cash Bonuses Under New Plan; Compensation Has Been Point Of Contention For Some Traders" - Bloomberg News
Portfolio Pulse from Benzinga Newsdesk
Exxon Mobil Corp. has revised its compensation policy to include cash bonuses for traders who take risks to increase company profits. This change is part of Exxon's plan to expand its trading operations. The new bonus structure, which was shared internally, will start paying out in December 2024. System traders involved in buying and selling physical commodities for the company's operations will not receive these bonuses.
December 13, 2023 | 3:43 pm
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Exxon Mobil's new compensation policy for traders may incentivize risk-taking to boost profits, potentially impacting the company's trading operations and overall financial performance.
The introduction of cash bonuses for risk-taking traders at Exxon Mobil is likely to encourage more aggressive trading strategies, which could lead to higher profits if successful. This change may be viewed positively by investors as it aligns trader incentives with company performance, potentially leading to a short-term positive impact on XOM's stock price.
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