Chevron Says To Give CEO Fewer Stock Options
Jan 30 (Reuters) - Oil and natural gas producer Chevron Corp said it would give its top executive fewer stock options after shareholders expressed concern about executive pay.
Oil companies have been restructuring pay packages of their top management after a two-year-long slump in oil prices eroded profitability.
Chevron said on Monday the average support from shareholders for the company's compensation package fell to 54 percent in 2016 from the 95 percent it averaged between 2011 and 2015.
Stock options give employees the right to buy a specific number of shares in the future at a pre-determined price.
Restricted stock units (RSU), once vested, are equal to a share of stock. They vest according to a set distribution schedule after an employee achieves performance goals, or remains with the company for a certain period.
Chevron said it held 25 meetings with shareholders, who held about 36 percent of its outstanding stock, and with advisory firms ISS and Glass Lewis.
The company said its board approved a grant to Chief Executive John Watson that included 250,000 stock options, 65,340 performance shares and 32,670 restricted stock units in 2017, compared with 964,800 stock options and 73,600 performance shares in 2016.
Chevron said the changes would strengthen accountability for project performance, investment discipline and reinforce the link between executive compensation and long-term performance. However, the move would not change the "target award value."
(Reporting by Arathy S Nair in Bengaluru; Editing by Maju Samuel)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally