Chevron reduces compensation for CEO

4/2/2013

Chevron reduces compensation for CEO

BY DANIEL GILBERT

SAN RAMON -- Chevron docked compensation for its CEO and two other top officials over accidents last year, trimming bonuses and other incentive pay while increasing their salaries.

The oil company reduced the bonus for CEO John S. Watson by $520,000, to $3.5 million. Mr. Watson's salary rose by $100,000, to $1.8 million.

Chevron also cut bonuses by 15% and 16%, respectively, for George L. Kirkland and Michael K. Wirth, both executive VPs, according to a filing with the Securities and Exchange Commission (SEC).

The Wall Street Journal reported that Chevron's board decided to cut pay for Mr. Watson and other top executives in response to a string of accidents over the last year, including underwater oil leaks in Brazil, a deadly rig fire in Nigeria and a blaze at a refinery in Richmond, California.

The company said that directors "took into account certain 2012 operating incidents" in awarding compensation packages to Messrs. Watson, Kirkland and Wirth. It also said strong financial performance last year, including Chevron's second highest profit ever, played a role in determining executive pay for this year.

Chevron also said it cut executives' stock options and certain compensation awards, based on the company's stock performance, but didn't put a value on the reductions. People familiar with the matter said the cuts totaled about 11% apiece.

Dow Jones Newswires

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