Form 4: Chevron Director Charles Moorman Reports Acquisition of Phantom Stock

Director Charles Moorman reports acquiring phantom stock in Chevron, payable in common stock upon termination of service.

Summary

• Charles W. Moorman, a director of Chevron Corp, filed a Form 4 on May 28, 2024, reporting a transaction on May 24, 2024.
• The transaction involved the acquisition of 287 shares of phantom stock under the Chevron Non-Employee Directors' Equity Compensation and Deferral Plan.
• The price of the phantom stock was $157.75.
• Following the reported transaction, Moorman beneficially owns 16,872 derivative securities, which includes 173 dividend equivalent accruals.
• The phantom stock is payable in common stock upon Moorman's termination of service.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine filing related to director compensation. There are no explicit positive or negative implications for the company's performance.

Positives

• The acquisition of phantom stock by a director can be seen as a positive sign, indicating confidence in the company's future performance.
• The Chevron Non-Employee Directors' Equity Compensation and Deferral Plan aligns the interests of directors with those of shareholders.

Future Outlook

The document does not contain specific forward-looking statements regarding Chevron's future performance, but the equity compensation plan suggests a long-term alignment of interests between directors and shareholders.

Industry Context

Director equity compensation is a common practice in publicly traded companies to align the interests of management with those of shareholders. Phantom stock is a type of equity compensation that provides directors with the benefits of stock ownership without actually granting them shares until a future date, such as termination of service.

Comparison to Industry Standards

• Chevron's director compensation practices, including the use of phantom stock, are generally in line with those of other large, publicly traded energy companies such as ExxonMobil (XOM) and Shell (SHEL).
• These companies often use a mix of cash, stock options, and restricted stock units to compensate their directors.
• The specific amounts and terms of compensation vary depending on the company's size, performance, and industry practices.

Stakeholder Impact

• The acquisition of phantom stock by a director has a minimal direct impact on stakeholders.
• It reinforces the alignment of interests between the director and shareholders, potentially encouraging decisions that benefit the company's long-term value.

Key Dates