We should send John Watson our thoughts of the condition of our present-day company, with the top 3 challenges and a short paragraph of the solution we propose would fix it. This company can only be fixed from the top down, not from the middle out. Write it out on one page, print it, then place it in an inter office envelope.
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I would gladly adjust my own salary from a $100 BO cost to an equivalent $50 BO cost. Back in 1999, things were much worse, when oil was $9 BO. When it cracked $20 BO we were ecstatic. In inflationary terms, $20 BO in 2000 is about the same as $40 BO now. We need to crank our salaries lower to reflect lower oil prices, and renegotiate drilling and completion costs to make things profitable at this "new normal." Chevron hired a ton of people over the past decade thinking we were in fat city forever (Hubbert global peak oil hubris, oops), and our entire population is going to need thinning, which is highly unfortunate.
Cutting the dividend will crush the stock price. I used to work for CVX. I think that some groups could easily bear 20 to 25% cut; others could be outsourced; we had too many contractors earning big bucks and with little to do. There was too much fat in that company. Management was incompetent and redundant. It was worst than kindergarten, one team leader for every 3-4 worker bees. All they did was attend meetings. Had no idea of how to manage people, work.
Idea #1) Conduct the ROM's in an open forum with no favoritism. Solution: Install a big "Wheel of Misfortune" in the main lobby or cafeteria of each building. Place everyone's name on the wheel and spin as many times as needed to get to the desired head count reduction.
Idea #2) Cut the dividend from $1.07 to $0.75 to save on quarterly cash outflow. Solution: What I just said.
Idea #3) Take a Salary and Stock Option Cut. Solution: Be a leader and announce you and the Board of Directors will take a significant pay cut equal to the same percentage loss our stock has taken from $135 to $84. When it goes up, so will your pay.
Shall we start to gather some ideas now?
I am on this
I think it's a good idea, but send it anonymously.
Have at it boss!