Chevron board increases its own pay
BY BEN LEFEBVRE
Chevron board voted to give its members a 25% raise in annual pay beginning this year, according to financial documents the company filed.
The raise would be the first since 2009 even as compensation rose for Chevron's competitors, the company said. Since then, Chevron's earnings have more than doubled, reaching $26 billion in 2012.
Chevron said its nine board members that aren't employees will receive total compensation valued at $375,000 per director this year, up from $300,000 the year before, according to its filing with the United States Securities and Exchange Commission (SEC).
The raise came after a recommendation from executive compensation consultants Pearl Meyer & Partners, which surveyed director pay at Anadarko, ConocoPhillips and other industry peers. It also comes as the board cut pay packages tied to stock performance for Chevron CEO John Watson and other executives for 2013 by roughly 10%, in the wake of some significant problems that occurred last year, including an oil spill in Brazil, a rig fire in Nigeria and a massive blaze at a Richmond refinery, California.
Chevron reduced the bonus for CEO John S. Watson by 13%, or $520,000, to $3.5 million. Mr. Watson's salary rose by $100,000, to $1.8 million. It also cut bonuses by 15% and 16%, respectively, for George L. Kirkland and Michael K. Wirth, both executive VPs, according to an earlier filing with the SEC.
Chevron this month received approval from California regulators to restart major equipment at its refinery near San Francisco after a major fire there in August 2011. It also in the past week received the go ahead from the Brazilian government to restart production at an offshore oil rig where leaks had been discovered in 2011.
Chevron is also now dealing with a March pipeline leak in Utah that spilled an estimated 500 barrels of diesel into a waterway in Utah. Chevron has so far recovered 408 barrels of diesel out of Willard Bay, the company said.
Dow Jones Newswires