XTO Energy (NYSE: XTO) shares may have reached new highs following the rise in energy prices, but many shareholders are still outraged by its executives' pay checks. Chairman Bob Simpson was ranked among the nation's top paid executives last year and is set to make the list this year as well. Simpson will take home $3 million less, but is still set to receive around $56.6 million this year.

Simpson saw his annual cash bonus rise to $35.5 million while his salary also increased to around $1.3 million, but the value of his stock related compensation decreased to $19.5 million as the company's earnings slid in 2007. The executive also received $137,648 in reimbursements for personal use of a corporate aircraft along with a car allowance of $47,800 for the year. Finally, that is all topped off with $75,054 in "other compensation", according to a proxy filed with the SEC.

This may seem like a stretch, but XTO Energy was quick to note that the stock is up 5,700 percent since it went public in 1993. More recently, shares are up 36.5% last year and an additional 32.2% so far this year. The company also noted that it has recently become the fifth largest holder of natural gas in the United States, signaling a continued rise to power in the industry as a large player. XTO has also been rapidly expanding in the areas in which it operates.

Shareholders are arguing, however, that the increase is due more because of the energy market than actions take by the company specifically. Rising oil prices have been the result of increased demand and steady supply thanks to recent decisions by Saudi Arabia to reduce their exports. As a result, some shareholders are now proposing a new provision that requires directors to stand for election every year.

In the end, Simpson is one of the co-founders of the company with a large ownership stake. Despite his hefty compensation, the stock has managed to post impressive returns even when compared to its industry. As a result, perhaps shareholders should hold off on their criticism until he starts taking such large raises amid a downturn in the natural gas market. Then they will see the true test of a good executive.