Form 4: Chevron Director Jon M. Huntsman Jr. Acquires Stock Units as Part of Compensation Plan

Chevron Director Jon M. Huntsman Jr. acquired 1,704 common stock units as part of the company's non-employee directors' equity compensation plan, increasing his total beneficial ownership to 10,560 shares.

Summary

• Jon M. Huntsman Jr., a Director of Chevron Corp. (CVX), acquired 1,704 shares of common stock on May 28, 2025.
• These shares were issued as stock units under the Chevron Corporation Non-Employee Directors' Equity Compensation and Deferral Plan, with a transaction price of $0 per share.
• Following this transaction, Mr. Huntsman Jr.'s beneficial ownership of Chevron common stock increased to a total of 10,560 shares.
• The reported beneficial ownership of 10,560 shares includes the acquisition of 65 dividend equivalent accruals on stock units, also under the same compensation plan.

Sentiment

Score: 7

Explanation: The acquisition of stock units by a director, as part of an equity compensation plan, aligns the director's interests with shareholders, which is generally viewed positively as a routine governance practice.

Positives

• The acquisition of stock units by a director aligns their interests with those of the shareholders, as their compensation is tied to the company's equity performance.
• This transaction is part of a pre-established equity compensation plan, indicating a structured approach to director remuneration.

Future Outlook

This document does not contain forward-looking statements or guidance regarding the company's future financial performance or strategic outlook.

Industry Context

The practice of compensating non-employee directors with equity, such as stock units, is a common and standard practice across large publicly traded corporations, particularly within the energy sector, to align director incentives with long-term shareholder value.

Comparison to Industry Standards

• The use of equity compensation for non-employee directors, as seen with Chevron's Non-Employee Directors' Equity Compensation and Deferral Plan, is a widely adopted corporate governance practice among S&P 500 companies, including peers like ExxonMobil (XOM) and BP (BP), which also utilize similar plans to incentivize and retain board members.
• The grant of stock units at a $0 price is typical for compensation awards, reflecting a non-cash compensation component rather than a market purchase, consistent with compensation structures at major global energy companies.

Corporate Governance

Related Party Transactions

• The issuance of stock units to Jon M. Huntsman Jr., a director, under the Chevron Corporation Non-Employee Directors' Equity Compensation and Deferral Plan constitutes a related party transaction, which is a standard and disclosed form of compensation.

Stakeholder Impact

• Shareholders: The transaction aligns the director's financial interests with shareholder value, potentially encouraging decisions that benefit long-term stock performance.

Key Dates

Keywords

Chevron, CVX, Form 4, Insider Transaction, Director Compensation, Equity Compensation Plan, Stock Units, Beneficial Ownership