Cheney's Halliburtion Stock Options Jumped 3,281% In Single Year

While war and disaster are bad for most people, they have been a financial windfall for those with ties to Halliburton.

An analysis released today by the Office of Senator Frank R. Lautenberg reveals that Vice President Cheney’s Halliburton stock options have increased in value 3,281 percent in one year.  The stock options, which were worth $241,498 one year ago are now valued at $8,165, 489.07.  In light of the surging value of Vice President Cheney’s holdings, Senator Lautenberg reiterated his call for the Vice President to forfeit his continuing financial interest in the Halliburton Co (HAL).  Vice President Cheney continues to hold 433,333 Halliburton stock options and receives almost $200,000 a year in deferred salary from Halliburton, as detailed below. 

Check out this graphic, produced by Senator Frank Lautenberg's office:

Click here to see the calculations of the value of Cheney's options.

According to the release from Senator Lautenberg,  

“As Halliburton’s fortunes rise, so do the Vice President’s, and that is wrong,” said Senator Lautenberg. “Halliburton has already raked in more than $10 billion from the Bush-Cheney Administration for work in Iraq, and they were awarded some of the first Katrina contracts.  It is unseemly for the Vice President to continue to benefit from this company at the same time his Administration funnels billions of dollars to it.  The Vice President should sever his financial ties to Halliburton once and for all.”

All of Vice President’s Cheney’s Halliburton stock options are “in the money” for the first time in years.  According to the Vice President’s Federal Financial Disclosure forms, he holds the following Halliburton stock options:

•         100,000 shares at $54.5000 (vested), expire 12-03-07
•          33,333 shares at $28.1250 (vested), expire 12-02-08
•          300,000 shares at $39.5000 (vested), expire 12-02-09

According to Lautenberg, the Vice President has attempted to fend off criticism by signing an agreement to donate the after-tax profits from these stock options to charities of his choice, and his lawyer has said he will not take any tax deduction for the donations. Valued at over $8 million, the Vice President could exercise his stock options for a substantial windfall, benefiting not only his designated charities, but also providing Halliburton with a tax deduction.

The Vice President also continues to receive “deferred salary” from Halliburton.  While in office, he has received the following salary payments from Halliburton:

• Deferred salary paid by Halliburton to Vice President Cheney in 2001: $205,298
  Deferred salary paid by Halliburton to Vice President Cheney in 2002: $162,392
  Deferred salary paid by Halliburton to Vice President Cheney in 2003: $178,437
  Deferred salary paid by Halliburton to Vice President Cheney in 2004: $194,852

In September 2003, the Congressional Research Service (CRS) issued a memorandum to Senator Lautenberg concluding that holding stock options while in elective office does constitute a “financial interest” regardless of whether the holder of the options will donate proceeds to charities.  CRS also found that receiving deferred compensation is a financial interest.

The CRS report can be downloaded here.

The CRS findings contradict Vice President Cheney’s puzzling view that he does not have a financial interest in Halliburton.  On the September 14, 2003 edition of Meet the Press in response to questions regarding his relationship with Halliburton where he was employed as CEO for five years, from 1995 to 2000, Vice President Cheney said:

“And since I left Halliburton to become George Bush's vice president, I've severed all my ties with the company, gotten rid of all my financial interest. I have no financial interest in Halliburton of any kind and haven't had, now, for over three years.”

Oh really?