Exxon Paying 2 Top Executives to Retire Early

Exxon Corp. says it is paying nearly $2.86 million to two top executives whose early retirements this year are enabling others to move up the ladder of the world’s largest industrial company.

Howard C. Kauffmann, who is stepping down as Exxon’s president, is receiving a special payment of $1.63 million and Donald M. Cox, who is retiring as a senior vice president, is receiving $1.238 million, Exxon disclosed Monday in materials prepared for its annual shareholders’ meeting. Both men are 62.

“For many years, the corporation has from time to time made compensatory payments to selected executives where the corporation would benefit as, for example, by the early retirement of an executive from a position which would provide an opportunity for executive succession planning,” Exxon said in its proxy statement.

The maximum payments may be no more than two year’s annual salary.

Kauffmann received $980,518 in compensation in 1984 and Cox received $715,127. The top compensation was the $1.34 million of Exxon’s chairman, Clifton C. Garvin Jr.

The retirements were announced Jan. 30. Exxon said at the time that Lawrence G. Rawl, 56, a senior vice president, had been nominated to succeed Kauffmann. Rawl’s selection made him a likely candidate to succeed Garvin, who is 63.