Dear PEI Member:
The compensation policy and reward system of a company are viewed by the
employees as indicators of management's attitude and concern for them.
Implementing a compensation system that is competitive and attractive for
the employee and at the same time, profitable for the company, is a
formidable task. PEI has recently completed the most up-to-date study
available in the industry, and has sent the results to all PEI distributor
members that participated in the study.
The 2008 Employee Compensation Report comes in two sections. The detailed
PEI Employee Compensation Report (Volume I) contains
information on the 99 PEI distributors taking part in the survey. This
section provides information on both executive and employee compensation,
including salaries, bonuses, commissions and perks. It also includes details
on fringe packages, such as retirement programs, health insurance, vacations
and the like.
The Cross-Industry Report (Volume II) includes data
submitted from 1,704 different firms in other distribution-related
industries. The report takes advantage of the large sample size to provide
information at its most detailed level by geographic area (including over
100 specific cities) and by 20 different sales categories.
The reports contain thousands of pieces of useful information. When
analyzed together, the PEI Report and the Cross-Industry Report allow the
reader to compare statistics and compensation packages between PEI members
and the other participants in the survey. Reports from
previous years can be used for purposes of comparison. For example, the
table below shows the average annual percent increase since
2003 in total compensation packages for both PEI members and
distribution-related industries in general.
Chief Marketing Officer
Chief Financial Officer
Typical Outside Salesman
Typical Inside Salesman
2008 PEI Distributor Compensation Study
Ethanol Additive Bill
Industry Events »
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All PEI distributors that participated in the survey should have recently
received the reports. The 2008 Employee Compensation Report is available to
nonparticipating PEI distributor members for $295. PEI provides the
Cross-Industry report on CD, together with a printed copy of Volume I. Order online by
ETHANOL ADDITIVE BILLS STALLED IN
"Controversy over biofuels—including
their role in food price spikes and their limited greenhouse gas reduction
benefits—is blocking congressional efforts to create a new EPA program to
develop additives for limiting ethanol's corrosive effects on underground
storage tanks (UST) and other fuel infrastructure, which may increase fuel
"House lawmakers last year approved
H.R. 547 which authorizes EPA's Office of Research & Development, in
consultation with the Department of Energy and the National Institute for
Standards & Technology, to research and develop 'materials to be added to
biofuels to make the biofuels more compatible with infrastructure used to
store and deliver petroleum-based fuels.' Senate Republicans included
identical legislative language in S.2958, a broad energy bill they
introduced last month. S.2958 has yet to have a hearing before the Senate
energy committee, while the Senate version of the stand-alone House bill is
yet to be considered in the environment committee.
"The research authorized by the bill would help
address widespread concerns that because ethanol and other biofuels are more
corrosive than conventional gasoline their increased use could result in
more fuel spills from USTs and pipelines. Insurance industry officials and
gas station owners say they are concerned that growing efforts to use an
85-percent ethanol blend—known as E-85—could
result in increased spills from USTs."
— INSIDE EPA, June 6, 2008.
New Jersey. The state has proposed
for the Department of Environmental Protection's certification programs for
individuals and businesses that work on regulated underground storage
systems and unregulated heating oil tank systems. New rules are also
proposed concerning professional business practices to be followed by these
certified individuals and companies. Comments are due by July 7, 2008.
Oklahoma. Gasoline blended with at least one percent ethanol or
methanol must have a label on the dispenser providing that information.
Gasoline that contains at least 10 percent ethanol or 5 percent methanol
must have a label on the dispenser indicating the percentage of ethanol or
methanol in the fuel. The effective date is July 1, 2008.
2008 DISTRIBUTOR PROFITABILITY SURVEY IN PROGRESS
If you are a PEI distributor member who is looking for tools to use in
planning sales growth, you are encouraged to participate in the PEI
Distributor Profitability Survey that is currently underway. Participants in
the survey will receive a Profit Toolkit online that will assist you in your
planning. This is available only to distributors who participate in the
survey. Deadline for submission is June 30. The Distributor Profitability
Report, provided free of charge to participating PEI members, is the best
benchmarking source in our industry. If you want to know more about this
program and its benefits to your firm, call PEI (918-494-9696) or the Profit
Planning Group (303-444-6212). The survey form is
available for download
from our website.
APPOINTMENTS AND PROMOTIONS
Shields, Harper & Co., Inc., Oakland, California, has appointed J.
D. "Dave" Sarginson president of the company, effective June 1. Sarginson
has been with the company since 1978 and has held many positions during his
continuous service including, most recently, executive vice president. He is
the sixth president in the 91-year history of the company. The announcement
was made by outgoing president Bart Scowley, who remains chairman and CEO.
Cincinnati, Ohio, has made two recent appointments to represent its products
in the central section of the United States. Windward Marketing Group was appointed
as its representative in Illinois, Iowa, Kansas, Missouri and Nebraska.
VSA Incorporated will represent PetroTechnik in Oklahoma, Arkansas,
Mississippi, Louisiana, Texas and western Tennessee.
PumpTex Inc., Beaumont, Texas, has promoted Glenn Blanchard to branch
operations manager at its facility in Austin, Texas. Blanchard has been
with the company since 2002.
The American Petroleum Institute (API): Red Cavaney will retire from
his post as president and chief executive officer of the API effective
November 1. Jack Gerard, president of the American Chemistry Council, has
been selected as Cavaney's successor.
PETROLEUM MARKETING NOTES
Chevron, which trades under the name Caltex in Kenya, has its
Kenyan and Ugandan operations for sale.
Texas Petroleum Group LLC (TPG) has signed a purchase and sale
agreement for Motiva Enterprise LLC's interest in 162 Shell-branded
retail gasoline stations in the Houston metropolitan area. TPG, a 50/50
joint venture between Landmark Industries Holdings Ltd. and Shell Oil Products
US, will continue to sell Shell-branded gasoline.
ConocoPhillips, Houston, Texas, expects to sell its remaining 350
company-owned, company-operated convenience stores this summer.
Repsol YPF has sold its chain of 123 service stations in Ecuador
to Primax for $47 million. The sale includes Repsol's lubricants and
aviation fuel business in Ecuador and forms part of the sale of
non-strategic assets set out in Repsol's 2008-12 strategic plan, the company
said. Primax is owned by the Romero Group in Peru and Enap, the Chilean
state oil company.
The Indianapolis branch of M&M Service/Mid
Valley Supply will relocate June 16 to 2228 Yandes Street, Indianapolis,
Indiana 46205. Telephone: (877) 381-7815 or (317) 347-8001. Fax: (317)