March 27 Chevron Corp said on Wednesday
its executive pay would reflect certain incidents in 2012 as
well as a financial performance that outpaced the U.S. oil
company's peer group.
According to the Wall Street Journal, Chevron's board has
trimmed equity awards by 11 percent and bonuses by at least 10
percent for Chief Executive John Watson and several other
executives as a result of a string of accidents.
A Chevron spokesman declined to comment beyond the
statement, which said that despite the company's strong overall
performance, it had some "operating incidents" during 2012.
"These incidents were reflected in Mr. Watson's and other
senior executives' compensation awards," the statement said.
Just a few months after an oil leak off Brazil in late 2011,
a fire burned for weeks at a Chevron well off the coast of
Nigeria in early 2012.
Then there was the fire at Chevron's oldest refinery in
Richmond, California, which led to damage that has kept the
plant operating at reduced capacity for more than six months.
"The board's compensation actions reflect the fact that
Chevron takes management accountability seriously," the company
said. "Our leadership understands that there are consequences
when it doesn't meet expectations, especially in areas as
critical as process safety."
Watson earned total compensation of $24.7 million in 2011,
including $5.1 million in stock, $7.2 million in option awards
and $4 million in non-equity incentives, according to a filing
last April with the U.S. Securities and Exchange Commission. The
equivalent filing for 2012 is due from Chevron in the next few