Home » NEWS » Chevron CEO's pay exceeds $15M

Chevron CEO's pay exceeds $15M

Chevron Corp.’s chairman and CEO received total compensation valued at $15.2 million in 2009, up 10 percent from 2008, as the nation’s second-largest oil company saw its oil production business boom but its refineries struggle.

Most of David J. O’Reilly’s compensation bump came in the form of a salary increase and a greater amount of stock and options awards, according to Associated Press calculations of data filed with regulators.

O’Reilly retired from Chevron at the end of 2009. In his final year with the company his salary rose nearly 9 percent to $1.79 million, and stock and option awards totaled $9.9 million on the days they were granted — up from $8.65 million in the prior year.

O’Reilly’s performance-related bonus fell 7 percent to $3 million but the value of his perks nearly doubled to $517,228, including company contributions to his savings plans, financial planning, aircraft and vehicle use and $254,939 for accrued vacation.

In 2008, his compensation package totaled $13.8 million, including stock and options awards Chevron valued at $8.7 million when granted; a $1.65 million salary, a performance bonus of $3.22 million and other compensation totaling $266,884.

O’Reilly was succeeded Jan. 1 by John S. Watson, who had been vice chairman. Watson earned $7.24 million in 2009.

Like many other oil companies, Chevron, benefited last year from recovering oil prices but its refining business suffered as demand diminished. The company’s earnings fell to $10.5 billion, or $5.24 per share, from $23.9 billion, or $11.67 per share in 2008.

Chevron, based in San Ramon, Calif., is expected to cut $1 billion this year from its downstream business, which includes refining, marketing and transportation.

The Associated Press formula is designed to isolate the value the company’s board placed on the executive’s total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits, making the AP total different in most cases than the total reported by companies to the SEC.

Chevron shares rose 4 percent during 2009 to finish the year at $76.99.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *

*