Comments on: Enron vs. Exxon Mobil: Polar Approaches to Energy and Public Policy

By: David R

David R — Tue, 16 Jun 2009 14:23:02 +0000

One addition to my comments Rob quoted: Last I looked (may be a bit lower now) Exxon-Mobil paid out almost 70% of profits before all taxes in property, excise, sales, income, and other taxes. Put another
way, for every dollar of after tax profits, they pay $2.30 to various governmental entities.

Seems more than fair to me.

By: rbradley

rbradley — Tue, 16 Jun 2009 02:55:47 +0000

I got a nice email from an old Enron buddy, David R., who wrote:

“Right on. Skilling called Exxon a dinosaur, yet who is extinct.

Every time I see an article on evil old Exxon which has an opportunity to comment, I point out that as someone who owned both Exxon and Enron stock, I’ll take stodgy old Exxon, thank you.

If appropriate, I also point out the golden opportunity we (INI) had in the early eighties to invest in an ethanol plant in LA which at the time provided a gasoline tax exemption which combined with the fed exemption equaled the cost of production. Of course, there were no plants at the time. We asked what the probability was that as soon as a plant was built, the state would change the exemption. “Never happen!!!!!!” Our response was, thanks, but no thanks, what the Lord giveth, the Lord can taketh away”.
Sure enough, when a plant was finally built, LA eliminated the exemption entirely. The answer is blowing in the wind, so to speak.

I kind of like the philosophy of only investing in projects which make money even if the government changes their mind.”

By: Andrew

Andrew — Mon, 15 Jun 2009 20:06:21 +0000

The problem is that in the upside down modern world, success is a liability and failure an asset. How’s that for “New Economy”?

By: Paul Roberts

Paul Roberts — Mon, 15 Jun 2009 19:28:44 +0000

I certainly advocate civic responsibility for corporations. But corporate entities also have fiduciary responsibilities. Civic responsibility includes support for charities and compliance with applicable laws and regulations. Fiduciary responsibility means maximizing the ability of the organization to grow and earn. These are separate but not mutually exclusive duties.

Fiduciary responsibilities are not well served by investing in every fad and paranoia that emerges. It is and must remain the duty of the board to determine how the company allocates its resources. These responsibilites must not be abandoned to activitists with their own objectives.