Chevron awards pay raises to CEO, other execs
SAN RAMON — Chevron’s chief executive officer received a pay raise in 2016, during a year that coincided with a big increase in the energy giant’s stock price — and its first annual loss in decades, according to a regulatory filing on Tuesday.
CEO John Watson received $24.7 million in total direct compensation, a company filing with the Securities and Exchange Commission shows.
Watson’s total pay in 2016 was 11.9 percent higher than his $22 million in total compensation during 2015, according to the SEC documents.
The CEO’s pay included $9.2 million in stock options and $5.4 million in awards of stock or restricted stock units. Watson’s base salary was $1.9 million. His perks included a $128,000 company contribution to a retirement plan, along with payments for motor vehicles, air travel and home security.
San Ramon-based Chevron’s stock soared 30.8 percent during 2016, despite relatively weak oil prices.
Patricia Yarrington, Chevron’s chief financial officer, received a reduction in pay. Yarrington earned $6.5 million in total pay in 2016, which was down 11.4 percent from the year before.
Michael Wirth, executive vice chairman and the head of midstream and operations development, received $9.1 million in total direct pay in 2016, up 12.4 percent from the year before.
James Johnson, executive vice president for upstream operations, which include exploration and production, was awarded $9.4 million in total direct compensation during 2016. That was 5.1 percent higher than 2015.
Joseph Geagea, executive vice president of technology, projects and services, was awarded $7.9 million in total direct compensation. His total pay for 2015 wasn’t listed.
Chevron executives also received some windfalls through the sale of stock options during 2016. Watson gained $11.7 million from the sale of options. Yarrington, Wirth, Johnson and Geagea each gained $2.7 million from selling options.
“Earnings in 2016 and earnings per share met business plan targets, excluding the impact of low commodity prices and other market-driven elements beyond management control,” Chevron stated in the SEC filing.
For all of 2016, Chevron lost $497 million, its first annual loss in decades, according to SEC filings that date back to 1989.
“Absent the impact of commodity prices, net cash flow was better than the business plan because of actions taken to lower operating expenses, restructure staff and curtail capital investments,” Chevron said in the SEC filing.
Chevron reduced its worldwide workforce last year by 6,300 employees to 55,200, according to its 10-K filing with the Securities and Exchange Commission. The oil and gas company cut its U.S. workforce by 3,100 workers to 26,500 over the same period.
Previously, Chevron had stated its cost-cutting measures were aimed at eliminating 8,000 jobs during 2015 and 2016. In October 2015, Chevron eliminated 500 jobs in the Bay Area, including 430 in San Ramon and 70 in Richmond.
“We’re sizing the organization to fit the work we anticipate,” Watson said in a conference call with analysts in January.