It impacts our CEO just as equally.
He may only earn his minimum $28 million dollars this year if he doesn't receive any performance bonus.
Winning in any environment.
24 replies (most recent on top)
Compensation is proportional to value. Someone turning on their little hamster wheel polishing widgets just isn’t worth as much as someone leading a mega project.
“Not a single one of you has a clue about executive compensation”? That’s not the right question. In fact, there’s no question how much the average Chevron employee below PSG 26 feels about the disproportionate compensation the 26+ elite get over the much greater majority of the workers. I understand the upper echelon require more money to lead and make the hard decisions, but enough is enough, and it’s ridiculous already. No wonder there’s a growing number of demoralized employees in this company.
Not a single one of you id–ts has a clue about executive compensation if you think the CIP factor affects leaders LESS than it affects you downtrodden masses, yearning to be free.
@6vqn, it’s besides the point that you say ‘it’s how corporate America works’. The point is agreeing whether it is fair or not? Surely, you can understand the gripe most workers have about this. This is not the only example of corporate greed that exists everywhere, but it doesn’t make the practice right or well received by the working majority.
Of course it’s too much but that’s the way corporate America works. The whiners seem like this is something new or exclusive to Chevron when it’s not.
@5yft, Those big dogs you seem to align yourself with already get a big salary than most others. To also get a higher percentage bonus that the rank and file employee seems a bit too much. Most would agree.
Those of you whining about the big dogs getting their bonuses, what planet have you been living on the last 40 years?
Thank you @3cab, AKA VP of Corporate Human Resources. Just because we’re already paid in the top 1 to 10% of highest salaries doesn’t mean we give a pass to our employer for giving us a low bonus corporate factor this year, while a few worthless leaders and project decision managers still get their high percentage bonuses, not to mention keep their jobs. You sound like an excellent shoe in for an HR position, but I’m not buying it.
Everyone knows our salary or hourly wage is our base pay. A bonus is just that, a bonus, extra, icing on the cake. The company is very generous with compensation packages and benefits. Many are far less generous. Some may be more generous, true as well. Yes, the higher up the corporate ladder you go, the better it gets. That is a common practice everywhere you look. Most employees at companies like Chevron are in the top 1% of earners in the world; according to economic data, $34,000 of income per person gets you there. Have some perspective. If you earn over $118,000 annually your are in the top 10% in America. Maybe be a little more content with what you have accomplished in your career, your ability to earn a nice living and generally thankful for your current level of compensation and benefits. Then be just a little less envious of those more fortunate than you currently are. "Those at the top are taking more then me"... is a tired plea. You are free to rise in the ranks and also to seek employment elsewhere. If you are looking for "fairness for everyone and total equality" read the latest fairy tale by Bernie Sanders. And please skip the polls in November. Your bonus might be a big ole slice of the pie or it may only be a cupcake, but its still sweeter than mustard on a biscuit. Take it easy people, life is good.
@3eiz, Many are saying they were served sh!tcake this year, so they have a right to complain. Isn’t there supposed to be a clearly defined formula that is to be followed in determining the corporate CIP factor? These last few years seem to have shown there is a certain level of subjectiveness that is introduced that results in skewing the corporate formula. IMO, this year didn’t work out fairly for the rank and file employee.
I don’t work for Chevron anymore. I retired 4 years ago and enjoying it. But, if I were still there, you bet I’d be upset about the 0.95 CIP corporate factor when knowing the leadership folks are enjoying a nice haul once again. I’d be inclined to not work that much harder or smarter in 2020. What’s the incentive of trying to do more if next year the regular staff employee will get stiffed. Remember what the middle initial is in “CIP”, it is INCENTIVE. If a company gives little incentive, it will not reap what it aims to sow.
It is not wise to dangle your feet and complain about how much icing you received while sitting comfortably atop several layers of cake.
Think about it!
People sure as hell are upset with the .95 especially following a 1.2 and 1.4 that past two years without the opportunistic write downs. Voicing that displeasure is another story and there isn't another alternative to being upset than leaving while upper management benefits remain intact. And 1 isn't the standard expected from personnel if you've been around long enough to gauge performance especially after a strong year in OE & #1 in TSR.
People aren’t upset with the 0.95 factor. What is concerning and disappointing is to see the executives not pitching in to help relieve the burden by electing to take the full 200% LTIP allotment. Instead, they take from those doing the work and producing the results, then turn around and ask them to do more - so they can again get their 200% allocation in 2020! That’s not leadership at all...Chevron needs serious leadership right now during these challenging times. Execs that don’t demonstrate servant leadership show their true colors and honestly aren't fit to lead an organization like CVX. Chevron has too many of these selfish leaders which is probably why its in the mess it is facing!
Not sure why some folks are so disappointed; .95 is a mere 5% off the standard 1.0. I believe that is not worthy of any real disappointment. Honestly, last year's corporate factor was a bit over the top. A pleasant surprise for sure but should not be expected. Conservative bonus payouts are likely to be the new normal for a while until we can consistently generate ROCE that meets targets. Sure I agree everyone should share in the successes and disappointments, I can understand that too. However, those at the top make the rules. If you want to change the way the game is played, rise to the position of CEO or get appointed to the BOD and you will have your chance.
Spoken like a true CVX exec enjoying their LTIP at the expense of those that actually do the work that results in strong TSR...thank you for reflecting the REAL Chevron Way for folks to see the style of leadership running this company straight into the ground. Keep it up so we can at least beat out our new competition of t-b-cco stocks...
Corp fac was 95%. Not bad. Ignore the whiners.
What was the corporate factor?
the Long Term Incentive Plan includes a 200% allocation of stock grants so, as you said, they are in fact getting rich - all at the expense of the rest of the company’s incentive plan...the increased dividend was a result of work completed by the lower PSG’s not any work done by the C-suite, I assure you of that! Perhaps the 200% LTIP allocations are in fact justified for positioning the company as one of “the next t-b-cco stocks” ahead of the upcoming “significant reallocation of capital” by the 67% of institutional investors that own CVX?
CVX stock options are only good if they are above the issued strike price and since the stock has been range bound for 10 yrs or so, no one is getting rich on them. Now if they are stock grants, that is another story. $$...and as for CVX performance...the dividend was increased +8% so C suite is doing their job well thank you very much.
Wirthless and his band of merry fools makes a “business” decision to take a write down in 4Q2019 and to screw all employees with their bad “strategies” and “decisions”! The fact that he and his executives will still “accept” all of their CIP and stock options after “managing” CVX to such “performance” belies their total lack of leadership and ethical qualities!
Yep. all the PSG 26+’s are still getting their 200% stock option allocations to their LTIP while the rest of the workforce had to take write downs to their CIP. The Chevron Way?
Don’t hate the Player, hate the Game.
But the hurt to his ego... Priceless