Horribly rich bosses: How do they get away with it?

July 15, 2011|By WILL BUNCH, bunchw@phillynews.com 215-854-2957

ONCE UPON A TIME - when the local founding Pew family was still in control - workers at Sunoco's sprawling Marcus Hook refinery joked about working for "Uncle Sunny," the kind of company in which a generous health plan for early retirees was negotiated with a simple handshake.

But today the dwindling number of time-clock punchers at the region's largest oil refiner say that they're so shell-shocked from the loss of 400 jobs at Sunoco's shuttered South Jersey site, a looming pension freeze and news that workers under 50 now won't be getting that retiree health coverage, they cringe at what might be next.

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"Your blood pressure is up from the time you check in until the time you leave," said Dave Miller, president of Local 10-901 of the United Steelworkers, which represents some Marcus Hook workers. His union cohort, Mike McLain, nodded in agreement: He was six months shy of his 50th birthday when Sunoco killed off the future-retiree health benefits for its under-50 workers.

But at least one Sunoco employee did all right by "Uncle Sunny" in 2010: its CEO, Lynn Elsenhans.

Elsenhans arrived at Sunoco in 2008 to carry out an aggressive program of cost-cutting. That apparently did not include her own compensation package - which rose last year by a staggering 524 percent, to more than $11.7 million.

Although last year's pay boost for the CEO of the Philadelphia-headquartered oil giant - in an era of salary and pension freezes for so many blue-collar workers - was certainly larger than most, it also highlights a surprising trend.

A Daily News survey of 51 CEOs of publicly traded companies in Philadelphia and its nearby Pennsylvania suburbs - firms in which the leadership didn't change and have reported their 2010 data - found that their average pay raise last year was a whopping 32.6 percent.

Not that Philly's CEOs were hurting in 2009, when their average compensation was more than $3.38 million. But, last year the typical top boss got a raise that topped $1 million, to more than $4.48 million.

Their pay hikes on steroids - including bonuses and other things that you probably didn't get, like stock and pension benefits, on top of base salary - is more than 10 times higher than the average American worker's raise of just 2.7 percent.

The New York Times reported earlier this month that average CEO raises nationally were 23 percent - meaning that Philadelphia is slightly ahead of the curve.

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