Good News is that very few of the stock options granted to Management over the last ten years are in the money. Management deserves this financial hit. Maintaining the high dividend will keep the stock price from growing and low capex and lousy project execution will keep volumes and earnings from growing. I am sure management will soon change the incentive system to continue to reward worthless management. They can always layoff 5000 to 10000 more and award the salary savings as bonus to the select few.
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It's nice that we have people who can predict the future of the market on this thread. I wonder why they would waste time here, since they are invariably billionaires, with all of that knowledge, you know!
There are pretty high odds that CVX stock peaks at 102 to 105, then trends down to mid 90s for the next 4 to 6 years. Lot's of underwater stock options result. CVX will not break above $105/sh until oil prices are consistently above $70/B. My guess is 2022. Flat to down stock prices means lots of options expire out of the money or with very low profits. The worst thing that happens to people with stock options is the stock stays flat for long periods. High dividend takes away cash flow needed to grow earnings per share. Hence expense cuts are the only way to drive stock price. More layoffs coming with this incentive plan. Short term thinking at work
You are a very astute observer, @1epy. I have been cognizant of that for some time. That fact alone tells you a lot of how our management thinks, not only of Chevron's future, but their own. There are one or two other astonishing things l could mention here, but divulging that information would likely give away my identity. I'm still with Chevron and would like to keep my job.
Chevron management generally vest and sell their stock. Looking at yahoo finance very few senior chevron insiders/managers hold significant chevron stock holdings. I guess they are not confident in our future. Look at yahoo finance stock holdings of ExxonMobil insiders. ExxonMobil management tends to hold tens of millions in ExxonMobil stock. ExxonMobil management hold much of their net worth in their stock and chevron managers cash out. What does that say about chevron long term thinking?
Mine are all 102-116, so no benefit at the moment. In March I got 7500 @ 78 bucks, in April I got let go and forfeited the lot.... 180 grand down the tube ! And it's a long term incentive plan. Not like I quit ! Anyway, enjoying the olympics.
Most of mine are/were $90 and below. But I've been around for a while. Staying all bent out of shape does no one any good. Count your blessings and like the other person wrote, don't harbor ill will and resentment. It will only eat you up from the inside.
Peace.
Average strike price is about $100 for invested options... would earn only $2 on average...Many options between 2010 and 2014 awarded above 110 are under water
I'm not sure I follow you. CVX is trading at $102+ right now. I know that's nothing fantastic, but looking at the energy sector as a whole that's not exactly catastrophic, depending on the option. Also many may have already exercised their options. Care to elaborate? Thanks. I am not a manager but also I don't obsess with having ill will and vengeance towards other's financial situations. It doesn't help or hurt me in any case, why should I care?