Chevron Cuts CEO's Pay

Chevron Corp. docked compensation for its chief executive and two other top officials over accidents last year, trimming bonuses and other incentive pay while increasing their salaries.

The oil giant 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.

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

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

The company said Tuesday 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 its second-highest profit ever, played a role in determining executive pay for this year.

The company also said it cut the 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 have said the cuts totaled about 11% apiece. Chevron's stock increased 1.6% in 2012.
 

 

Copyright (c) 2012 Dow Jones & Company, Inc.

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