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

Director Charles W. Moorman reports acquisition of Chevron phantom stock under the Non-Employee Directors' Equity Compensation and Deferral Plan.

Summary

• Charles W. Moorman, a director of Chevron Corp, filed a Form 4 with the SEC on March 6, 2024.
• The report details the acquisition of 304 shares of phantom stock on March 4, 2024, under the Chevron Non-Employee Directors' Equity Compensation and Deferral Plan.
• The price of the phantom stock was $148.88 per share.
• Following the transaction, Moorman directly owns 16,412 derivative securities, which includes dividend equivalent accruals of 164 shares.
• The phantom stock is payable in common stock upon termination of service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects a director's ongoing participation in the company's equity compensation plan, aligning interests with shareholders.

Positives

• The acquisition of phantom stock aligns the director's interests with the long-term performance of Chevron.
• The Non-Employee Directors' Equity Compensation and Deferral Plan provides a mechanism for directors to accumulate equity in the company.

Future Outlook

The phantom stock will be payable in common stock upon the reporting person's termination of service.

Industry Context

Form 4 filings are routine disclosures required by the SEC to provide transparency into the transactions of company insiders, such as directors and officers. This filing indicates ongoing participation in Chevron's equity compensation plans by its directors.

Comparison to Industry Standards

• Equity compensation for non-employee directors is a common practice among large publicly traded companies like Chevron.
• Companies such as ExxonMobil (XOM) and Shell (SHEL) also utilize equity-based compensation plans for their directors to align their interests with shareholders.
• The specific terms and amounts of equity compensation can vary based on company size, performance, and industry norms.

Stakeholder Impact

• The acquisition of phantom stock by a director can positively influence shareholder sentiment by demonstrating alignment of interests.
• Employees may view the equity compensation plan as a positive aspect of the company's governance.

Key Dates