Chevron holds executive salaries steady, adjusts equity awards

HOUSTON – Chevron Corporation (NYSE:CVX), a $268 billion oil and gas giant with a robust 4.17% dividend yield, has maintained its Chairman and CEO Michael K. Wirth’s annual base salary at $1,900,000 while adjusting the base salaries and equity awards for other top executives, as detailed in a recent SEC filing.

According to InvestingPro analysis, the company appears undervalued at current prices, with strong financial health metrics and a 37-year streak of consecutive dividend increases.

The independent Directors of Chevron’s Board conducted their annual review of executive compensation on January 29, 2025. Following the review, they decided to keep Wirth’s salary unchanged. However, the Board approved a $50,000 salary increase for both Vice President and Chief Financial Officer Eimear P. Bonner, bringing her annual base salary to $1,050,000, and for Vice President and General Counsel R. Hewitt Pate, whose salary will rise to $1,200,000. Vice Chairman Mark A. Nelson also received a $50,000 increase, resulting in a $1,325,000 annual salary. Executive Vice President and Senior Advisor A. Nigel Hearne’s salary remains at $1,075,000 in light of his impending retirement.

Equity awards for 2025 were also ratified by the independent Directors under the 2022 Long-Term Incentive Plan (LTIP), with no changes to the target bonus percentages for the Chevron Incentive Plan (CIP). Wirth’s equity grant target value is set at $17,500,000, while Bonner, Nelson, and Pate have been allocated $4,329,000, $6,902,500, and $4,329,000 respectively. These awards are composed of performance shares, restricted stock units, and stock options, with specific vesting schedules and conditions based on company performance metrics.

The performance shares will be determined by Chevron’s Total (EPA:TTEF) Shareholder Return (TSR) and Return on Capital Employed (ROCE) relative to its peers and the S&P 500 Index over a three-year period. The stock options have a ten-year term, vesting in thirds over three years, and the restricted stock units vest similarly, with a two-year post-vesting holding period for executive officers.

The filing indicates that the stock options’ exercise price will equal Chevron’s common stock closing price on the grant date, February 4, 2025. The equity awards are subject to forfeiture if employment is terminated before February 10, 2026, with certain provisions allowing for vesting upon termination under specific conditions.

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