By JOE CARROLL
Chevron slashed chairman and CEO John Watsons
compensation by 25% after oil and natural gas output by the
second-largest US energy producer tumbled to a five-year low.
Watson earned $24 million in 2013, compared with $32.2
million a year earlier, the San Ramon, California-based
company said in a regulatory filing on Thursday.
The pay package included $1.77 million in salary, $5.8
million in stock awards and options awards valued at $9.2
Watson oversaw $41.9 billion in capital spending last year, a
23% increase from 2012 that failed to reverse sliding
production or add enough reserves to replace all the oil and
gas Chevron pumped during the year. For this year, the
company plans to pour almost $40 billion into project
s that Watson said last
month will contribute to long-term production goals.
The stocks 16% gain last year underperformed the
companys largest US rivals, ExxonMobil and
ConocoPhillips. Earlier this week, Chevron signaled that
first-quarter profit dropped to the lowest since 2010 as
output from wells headed toward an eight-year low.
Chevron shares have declined 6.2% this year.