Pay Gap between CEO and Employees Widens at Chevron

The wage gap between Chevron’s CEO and its employees has widened.

According to a securities report released on the 10th (local time), Chevron’s CEO, Michael Wirth, was paid $26.5 million in 2023.

This represents a 12.2% increase from the previous year, exceeding the average pay increase of the employees.

Additionally, the second-highest-paid executive, Mark Nelson, was paid $12.2 million and was promoted to vice chairman last year, earning $12.2 million, a 61.5% increase.

Chevron’s proposed $53 billion acquisition of oil producer Hess is pending regulatory approval and facing scrutiny. It also positively influenced Wirth’s salary determination, and the board stated that it strengthened the company’s portfolio.

Last year, the average annual wage of Chevron employees in the U.S. and abroad increased by 8.7% to $175,673.

However, in 2022, the average annual wage of employees decreased by 12% to $161,488, while Wirth’s salary increased by 4%.

On the other hand, Chevron’s stock price fell 15% last year to $149, underperforming compared to its counterparts in the same industry.

The CEO’s non-equity incentive compensation decreased by 42% to $2.6 million due to penalties for cost and schedule delays on Chevron’s major projects by Wirth in Kazakhstan and overruns in capital expenditures in the U.S. Permian Basin.