Form 4: Chevron Director Marillyn A. Hewson Reports Phantom Stock Transaction

Director Marillyn A. Hewson reports acquisition of Chevron phantom stock under the Non-Employee Directors' Equity Compensation and Deferral Plan.

Summary

• On August 30, 2024, Marillyn A. Hewson, a director of Chevron Corp, reported a transaction involving phantom stock.
• Hewson acquired 264 shares of phantom stock under the Chevron Non-Employee Directors' Equity Compensation and Deferral Plan.
• The price of the phantom stock was $147.95.
• Following the transaction, Hewson directly owns 4,078 shares of Chevron common stock, which includes 37 dividend equivalent accruals.
• The phantom stock is payable in common stock upon termination of service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects a standard director compensation practice, indicating alignment of interests with shareholders.

Positives

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

Industry Context

Director compensation through equity and deferred compensation plans is a common practice in the oil and gas industry to align management interests with shareholder value.

Comparison to Industry Standards

• Companies like ExxonMobil (XOM) and Shell (SHEL) also utilize equity-based compensation for their directors.
• The specific terms of these plans, such as vesting schedules and payout structures, can vary significantly across companies.
• Chevron's Non-Employee Directors' Equity Compensation and Deferral Plan appears to be a standard practice for attracting and retaining qualified board members.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.

Key Dates