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May 31, 2012 | Vol. 62, No. 12

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In This Issue
Dear PEI Member:

The 2012 PEI Employee Compensation Report (an analysis of 2011 compensation practices) provides information on executive and employee compensation, including salaries, bonuses, commissions and perks. It also includes details on fringe benefit packages, such as retirement programs, health insurance, vacations and the like.

The survey was sponsored by PEI and 25 other organizations in the distribution industry. A total of 1,125 U.S. firms participated in the cross-industry survey. Of that total, 66 were members of PEI. The results are contained in two separate documents. One volume contains information pertinent to PEI distributor member firms. The second volume contains cross-industry information at its most detailed level, including breakouts for 22 different sales volume categories from nearly 100 specific geographic regions.

A copy of the Report was sent last week free of charge to all distributors contributing information for the study. If you are a distributor who did not participate in the study but wish to purchase the two-volume report, the price is $295.

To test your general knowledge of the industry and distributor compensation plans, we have drafted 10 questions based on figures contained in the Report. We intentionally left out facts and figures on salaries of specific executives and employees, although they are contained in the Report. A link to the answers follows the final question.

1. The typical (median) PEI distributor had sales in 2011 of:
a) $2,808,000
b) $6,808,000
c) $8,808,000
d) $11,808,000

2. The typical (median) PEI distributor's branch sales in 2011 (per branch) were:
a) $3,177,000
b) $5,177,000
c) $6,177,000
d) $7,177,000

3. The bonus paid to the CEO of a typical PEI distributor in 2011 was what percent of the CEO's salary?
a) 10%
b) 20%
c) 30%
d) 40%

4. What percent of the CEOs that run PEI distributor companies are founders of their company?
a) 23%
b) 43%
c) 55%
d) 71%

5. How old is the typical CEO of a PEI distributor and how many years has the CEO been with the company?
a) 52 and 26
b) 55 and 29
c) 59 and 32
d) 62 and 33

6. Sixty-four percent (64%) of the distributors in the cross-industry survey have no set policies for raises. For PEI distributors, what percent have no policy for raises?
a) 32%
b) 55%
c) 65%
d) 77%

PEI 2012 Employee Compensation Report

E15 Compliance Survey Plan Approved

Kemp Scholarship Recipients Named

Veeder-Root Acquires Catlow

PEI Board Election Time

E15 Studies

In This Issue

More PEI and Industry News »




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7. What percent of PEI distributors credit commissions to salespeople when payment is received?
a) 28%
b) 39%
c) 54%
d) 67%

8. What percent of PEI distributors have a written employment contract with their salespeople?
a) 28%
b) 41%
c) 48%
d) 59%

9. What percent of PEI distributors offer flextime scheduling to their employees?
a) 14%
b) 34%
c) 54%
d) 74%

10. What percent of PEI distributors have an employee policy manual?
a) 51%
b) 72%
c) 89%
d) 97%

Click here for the answers.

The U.S. Environmental Protection Agency (EPA) has approved the 2012 E15 Compliance Survey Plan submitted by the RFG Survey Association (RFGSA) on behalf of its 71 companies. The RFGSA survey plan is designed to satisfy the survey requirements established in the E15 Misfueling Mitigation Rule (40 CFR 80.1502). That rule requires that a survey plan be submitted for EPA approval each year for use in the following year. EPA's approval granted May 24 is for the remainder of 2012.

The PEI Foundation's scholarship selection committee has selected five entering college freshmen to receive Charles D. Kemp scholarships. Recipients of the $1,000 scholarships are:

  • Bryson Banks, son of Mike Johnson, PSI, Beaumont, TX;
  • Andrew Kerth, son of James Kerth, Kubat Equipment, Denver, CO;
  • Ian Marcelle, son of Gleston Marcelle, Tanknology, Austin, TX;
  • Steven L. Moran, son of Diane Moran, Service Station Systems, Inc., San Jose, CA; and
  • Cylee Wagner, daughter of Cathleen Wagner, Oscar W. Larson Co., Clarkston, MI.

Veeder-Root acquired the assets of Catlow Inc. on May 15. Catlow's manufacturing, engineering, technical support and customer service will continue to operate out of Catlow's headquarters in Tipp City, Ohio. Cameron Carmack, president of Catlow, will continue to lead the business.

California prosecutors
have filed criminal charges against a Santa Barbara, California, environmental consulting firm and its owners for allegedly overbilling the state for cleaning up underground storage tank sites in 2008. If convicted, the company's owners face up to five years in state prison. The state is also likely to file civil charges against the defendants, said Cris Carrigan, director of the state water board's Office of Enforcement. The defendants allegedly received reimbursements for performing work in Santa Barbara while they were vacationing in Costa Rica.
Tanknology Inc., Austin, Texas, has appointed J.R. Roberts as the company's sales manager for the Southwest Region. He brings more than 30 years of experience in all facets of storage tank management including petroleum equipment sales, repair, facility management, assessments and compliance.
The California Energy Commission approved a plan May 9 to allocate $100 million over fiscal year 2012-2013 to encourage development and use of biofuels ($20 million), hydrogen cell fueling stations ($11 million), electric charging stations ($7.5 million) and other technologies ($61.5 million) to boost the use of alternative fuels and vehicles.

It is time to begin the process of electing members to the PEI Board of Directors. Under PEI's election procedure, the official representative or a duly appointed alternate must request to have his/her name included on the ballot. A form for that purpose was sent May 25 to the official representatives of PEI member companies from PEI's affiliate division and the even-numbered districts of PEI's distributor and manufacturer divisions. The form must be received in Tulsa by the close of business on Wednesday, June 6, for the name to appear on the ballot. If you have misplaced your form and need another one, email Carletta Denison at

The boost in ethanol production trimmed
an average of 29 cents a gallon off the price of gasoline in the United States from 2000 to 2011, according to a study from Iowa State University. Researchers found that in 2011 alone, ethanol production reduced gasoline prices by an average of $1.09 a gallon nationally and as much as $1.69 in the Midwest. The study was funded by the Renewable Fuels Association.
Gasoline containing 15 percent ethanol (E15) caused mechanical and performance failures in two of eight vehicle models tested as part of an industry-funded study released May 16. The study, Intermediate-Level Ethanol Blends Engine Durability Study, was conducted by the Coordinating Research Council, a nonprofit group funded by the petroleum and automotive industries.

Florida consulting engineering firm
. T Y Lin International, 201 Alhambra Circle, Suite 900, Coral Gables, Florida 33134, has applied for affiliate division membership. Mike Miller is vice president, engineering for the firm, which was established in 1953. The company is a consulting engineering firm specializing in vehicle fleet fueling systems, rental car quick turnaround facilities and alternative fuels. Sponsored for PEI membership by Tony Honey, ModernWeld, Owensboro, KY.
California construction, service and testing firm. Walton Engineering Inc., P. O. Box 1025, West Sacramento, California 95691, has applied for service and construction division membership. Michael Walton is president of the firm, which was established in 1988. The company is engaged in the construction, service and testing of fueling systems throughout northern California. Sponsored for PEI membership by B. A. Scowley, ShldsHarpr, Martinez, CA. 
California manufacturers representative. Pro Flow Dynamics, LLC, 330 South Maple Street, Units F & G, Corona, California 92880, has applied for affiliate division membership. Clark Beesley is director of sales for the company, which was established in 2007. The company specializes in cam and groove couplings, diesel fuel management systems and DEF products. Sponsored for PEI membership by Walter Bernoldi, PIUSI, Fort Lauderdale, FL.


  • Oasis Engineering Ltd., Tauranga, New Zealand (mfr)
  • Fuller Installations Inc., North Haven, CT (S&C)
  • Don Chaplin, BJ's Wholesale Club, Westborough, MA (O&E)


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Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.