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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)
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