HOUSTON, April 11 Compensation for three of
Chevron Corp's senior leaders, including Chief Executive
John Watson, rose last year due to a change in how the value of
pensions are calculated.
The disclosure, required by U.S. regulators, comes as the
oil industry grapples with low prices and Chevron, the
second-largest U.S.-based oil producer, tries to bounce back
after posting an annual loss last year, its first since 1987.
Chevron's shareholders will meet May 31 in Midland, Texas,
for a nonbinding vote on the executive payouts. They will also
consider resolutions related to climate change, lobbying and
Much of the executive compensation boost was due to the rise
in value of pension plans tied partly to Chevron's stock, which
climbed 28 percent last year as oil prices increased 47
percent. Age and other factors can effect actuarial calculations
of a pension's value.
Watson, CEO since 2010, saw his compensation rise 12 percent
to $24.7 million, fueled largely by the pension value increase.
The value of stock and stock options awarded to Watson fell, as
did the value of perquisites, including personal use of the
company jet and home security. Watson's salary stayed nearly
flat at $1.9 million.
Mike Wirth, head of the company's midstream division who
became vice chairman earlier this year, saw his compensation
rise 12 percent to $9.1 million. Wirth's salary rose but the
value of his stock and stock option awards fell. The value of
perquisites he received rose due to air travel.
Pat Yarrington, Chevron's chief financial officer, saw her
compensation fall 11 percent to $6.5 million as the value of her
pension fell, the only top executive to see a drop in pension
value. Yarrington's salary rose but the value of her stock and
stock option awards fell. The value of perquisites Yarrington
received slid as she did not record any personal use of the
Jay Johnson, head of the company's oil and gas exploration
division, saw his compensation rise 5 percent due to an increase
in salary, stock options and the value of his pension. The value
of perquisites Johnson received dropped by nearly 50 percent due
to the cost of a home security system in the prior year.
Watson, Wirth and Johnson took their spouses on a September
2016 trip to Chevron's liquefied natural gas projects in
Australia, costing $2,299, $16,014 and $2,243, respectively.
(Reporting by Ernest Scheyder; Editing by Tom Brown)