Quote:
Originally Posted by Unregistered
Anyway, part of the reason why Banking and O&G companies pay high salaries is because they are volatile/cyclical industries, and are more prone to laying off people. This phenomenon is obvious in banking - just look at HSBC, Goldman, RBC, MacQ, etc. This is happening in O&G too, ever since the prices of oil fell significantly over the past year. Furthermore, Big oil's profit is suffering, which would also lead to lower bonuses. The era of high-oil prices, as according to many oil analysts and Big Oil CEOs, seem to have ended. This is a very significant issue since the base salaries in the O&G industry is quite similar to the rest of the industries, with the high bonuses contributing to the high overall salary package in the O&G industry.
|
Actually broad painting oil & gas industry is not doable. O&G has a far more diversified profile & culture between companies compared to banks which tend to be more homogenous, i.e. times are bad all cut headcount together, times are good all pay big bonus together. Basic salary also more or less at same level.
For e.g. if you look at the big oil, all very different profile:
1) Exxon - Forever firing people at the low end of the performance curve regardless of company or industry situation. Generally high basic & big fixed bonus. Good thing is if you are strong performer, they don't give 2 hoots about what low oil price, increment & bonus continue business as usual. Bad thing is if you can't meet the curve, you can lose your job even if oil price is at $200.
2) Shell - Tends to pay high basic salary & bonus regardless of industry situation. Paid out massive bonus this year even as prices are falling. Because of this very low turnover as nobody want to leave, but also makes it very hard for mid career to join as little opening.
3) Chevron - Tends to react to industry conditions more compared to the other 2 bigger rivals, i.e. will cut & increase bonus & pay if needed. But still very mild compared to most banks. Likes to boast of having best benefit among big oil and never cutting them no matter what crisis.
4) Total - Very European culture, much smaller basic pay & bonus compared to the rest, but stability is almost like civil service. Job security maybe the highest in the industry, extremely low turnover.
5) Conoco - Flexible culture like most banks. Volatile in terms of pay & bonus and also job security, but in good years sometimes their package can be even better than bigger rivals.
6) BP - In a very bad shape now, more like in survival mode. Massive chopping headcount, cut pay & benefits, cost cutting everywhere in order to survive the downturn. Turnover very high like revolving door.