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Halliburton Moving HQ To Dubai

Posted by kdawson on from the might-as-well dept.

theodp writes "Much-maligned defense contractor Halliburton is moving its corporate headquarters from Houston to Dubai in the United Arab Emirates. Dubai's friendly tax laws will add to Halliburton's bottom line. Last year the company earned $2.3B in profits. Sen. Patrick Leahy called the company's move 'corporate greed at its worst.' Halliburton, once headed by VP Dick Cheney, has been awarded contracts valued at an estimated $25.7B for its work in Iraq."

11 of 555 comments (clear)

  1. What are they avoiding (besides paying taxes)? by BWJones · · Score: 5, Interesting

    Honestly, given the companies past alleged illegal/unethical behavior, the first thing that came to my mind was.... "what is coming down the pipe that they are trying to avoid?" Specifically, by moving the corporate HQ out of the country, are they avoiding some potential legal action because of illegal or unethical corporate behavior? After all we do know about lots of no-bid contracts they were awarded, not to mention the overcharging of contracts and more. It should also be noted that Haliburton is trying to off-load KBR. But fundamentally, regardless of ones political bias, even if there is no forthcoming news of illegal activity, because this corporation has benefitted so much from contracts awarded by the US government, moving off shore to avoid paying US taxes is simply an additional insult.

    P.S. Remember when Cheney refused to sell his Haliburton stock when appointed VP? He also resisted placing it into a blind trust and if I remember correctly, continues to receive compensation from Haliburton. Also, the content of Cheney's energy task force demonstrated that companies (Haliburton included) had direct input into the official federal energy plan, effectively allowing corporations to dictate US policy.

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    1. Re:What are they avoiding (besides paying taxes)? by dreamchaser · · Score: 5, Insightful

      I wish the reporting would be more accurate. They stated VERY clearly that they are remaining incorporated in the US and will still be paying US taxes and be subject to US law.

      Ninety percent of their business is in the Middle East and Asia. The move just makes business sense. The only ill effect will be a few hundred jobs in Houston lost; not a good thing for those people but all part of business.

    2. Re:What are they avoiding (besides paying taxes)? by Wah · · Score: 5, Informative
      Cheney has NOT been paid by Halliburton since he began running for VP almost 8 yrs ago.

      That's not true.

      Vice President and Mrs. Cheney filed their federal income tax return for 2004 today. The income tax return shows that the Cheneys owe federal taxes for 2004 of $393,518 on taxable income of $1,328,678. During the course of 2004 the Cheneys paid $290,855 in taxes through withholding and estimated tax payments. The Cheneys paid $102,663 upon filing their tax return.

      The wage and salary income reported on the tax return includes the Vice President's $203,000 government salary. In addition, the tax return reports the payment of deferred compensation from Halliburton Company in the amount of $194,852. In December 1998, the Vice President elected to defer compensation earned in calendar year 1999 for his services as chief executive officer of Halliburton. This amount was required be paid in fixed annual installments (with interest) in the five years after the Vice President's retirement from Halliburton.
      [pretty good source

      Additionally, before he became Vice President, he excercised options worth over $30,000,000.
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    3. Re:What are they avoiding (besides paying taxes)? by twiddlingbits · · Score: 5, Informative

      Deferred compensation that was paid AFTER he left, the article makes it seem like he was paid as CEO and as VP AT THE SAME TIME. He earned that money in years before 1999 due to performance incentives in his contract and it was due him by his contract that he was given when he was hired. Halliburton had to pay him whether he was VP or was off playing Golf. If they hadn't paid he could have sued. If YOU had met certain incentives wouldn't you want your money? If your options were in the money wouldn't you exercise them? Get the fuck off this, he earned the compensation, options and the money due him just like anyone else. No one gripes that Bill Clinton makes millions "consulting" and has a wife that is a Senior Senator from NY. Talk about influence!

    4. Re:What are they avoiding (besides paying taxes)? by tempestdata · · Score: 5, Informative

      You are completely and totally wrong. As a person who was brought up in a suburb of Dubai (I'm not a UAE citizen) I can tell you that Iran and the UAE do NOT get along. Iran tolerates the UAE, and the UAE fears Iran. Simple as that. Do a google on the island of "Abu Musa" (or Abu moosa) and you'll see why. The UAE is very pro US, and Iran as we all no, isn't. The UAE is THE most liberal and open of the Arab societies (with the possible exception of Jordan) .. Iran is one of THE most conservative and religiously fanatical countries of the region. Iran is Shiite. The UAE is mostly Sunni (a significant chunk of which is Wahabi). The LAST thing dubai wants is a nuclear Iran.

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      - Tempestdata
    5. Re:What are they avoiding (besides paying taxes)? by stephanruby · · Score: 5, Interesting

      "[Dick Cheney] earned that money in years before 1999 due to performance incentives in his contract..."

      I completely agree. And I wish someone would mod you up, because your post brings us much closer to the truth.

      Dick Cheney got the job as CEO of Halliburton (his first job in the private sector) as a result of being Secretary of Defense. Before Dick Cheney was Secretary of Defense, Halliburton was nothing -- his decisions as Defense Secretary made Halliburton wealthy. So if Cheney is getting paid now, it's because of the wealth he created Halliburton during his reign as Secretary of Defense -- not as CEO. As CEO, he implemented a very aggressive take over strategy of asbestos companies (after the scandal had already broken out) which basically got Halliburton to pick up many bargains -- but eventually led it to declare bankruptcy (i.e. Corporate Welfare).

      Now Hilary Clinton may be as corrupt as Cheney, may be, but compared to Dick Cheney -- Hillary Clinton is a freaking genius where it comes to business. Hell, even George W. Bush's failed business record is not as bad as Cheney's.

  2. Well now that they're a foreign company... by nixkuroi · · Score: 5, Insightful

    Maybe we should consider rethinking their contracts as we did the Dubai port management deals. Companies that are based outside the US are clearly not as favorable in terms of our security - at least in the eyes of congress.

  3. Get your facts straight by RichPowers · · Score: 5, Informative

    Listen, I'm not a fan of Halliburton screwing over the American taxpayers. I'm also against their huge no-bid contracts.

    But as Slate's "Explainer," well, explains, Halliburton "is still incorporated in Delaware and remains subject to U.S. law and taxes." The article goes on to say that Halliburton would have a hell of a time incorporating in Dubai, but moving its workforce overseas is not out of the question.

    After all, 55% of the company's business comes from the Eastern hemisphere. This move makes perfect sense, given their long-term business plans.

    PS: The company's defense component, KBR, is set to become its own company. Halliburton's new HQ should not affect KBR.

    http://www.slate.com/id/2161652/fr/rss/

  4. if i learned anything from starcraft... by hildi · · Score: 5, Funny

    its that you can build two headquarters, but thats usually when your first one is about to be overrun

  5. Re:I'd pick Dubai over Houston any day of the week by clambake · · Score: 5, Interesting

    It is a world class city with all the "modern" things you'd want and a touch of class that makes it a true gem.

    A very large population of indentured slaves, for example.

  6. Re:HEY EVERYBODY by Kpau · · Score: 5, Insightful

    Isn't it fascinating that the vast majority of rightwing bullshit talking points are coming from "Anonymous Cowards"? Maybe we should re-assign that to be "fascist thugs" after Mussolini's little unofficial minions, eh? Halliburton is positioning itself for the incoming civil and criminal actions... they are spinning off all defense "support" contracts into a separate company (collecting all potential loss items into one bag) after already taking the profits. Two headquarters is, as a previous poster stated, inherently absurd unless you're expecting HQ#1 to be zerg'd. The US will be damned lucky if it gets a fraction of the completely missing billions of dollars back after all this is done. What we have here are a few corporations (or actually a very small group of people of whom the Bushes and Cheneys are part) who have manipulated themselves into power, looted the US budget/treasury, damaged the governments ability to conduct oversight, and are now scampering out the door. Worse, they have fooled enough of the social and fiscal conservatives into following them for long enough to pull this scam. At this point, anyone supporting these hooligans are either embarrassed and defensive, have a financial stake in it, ... or roadway gravel stupid. (signed, former republican -- these people make Nixon look saintly)