4/A: Chevron Executive R. Hewitt Pate Corrects Address in Form 4 Amendment

Chevron's VP and General Counsel, R. Hewitt Pate, files an amended Form 4 to correct his address, with no other changes to the originally reported transactions.

Summary

• R. Hewitt Pate, VP and General Counsel of Chevron, filed an amendment to a previously submitted Form 4.
• The amendment, filed on March 6, 2024, corrects the reporting person's address.
• The original Form 4, filed on February 8, 2024, reported transactions from February 6, 2024.
• The transactions included the acquisition of 28,200 non-qualified stock options at an exercise price of $152.35, vesting in three equal installments starting February 10, 2025.
• Additionally, 7,030 restricted stock units were granted under the Chevron Corporation 2022 Long-Term Incentive Plan, also vesting in three equal installments starting February 10, 2025.
• The filing also reports 4,088 restricted stock units, including dividend equivalents, previously granted on January 27, 2023, with vesting dates starting January 31, 2024.
• Shares issued upon vesting are subject to a two-year post-vesting holding period, which is removed upon termination of employment.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing (Form 4 amendment) related to executive compensation. It doesn't contain any particularly positive or negative news, but the granting of equity-based compensation is generally viewed as a positive sign of alignment between management and shareholders.

Positives

• The grant of stock options and restricted stock units suggests a continued investment in and alignment with the company's long-term success for the executive.

Future Outlook

The vesting schedules for the stock options and restricted stock units extend into 2027, indicating a long-term incentive structure.

Industry Context

Executive compensation through stock options and restricted stock units is a common practice in the oil and gas industry to align management interests with shareholder value and long-term company performance.

Comparison to Industry Standards

• Companies like ExxonMobil (XOM) and Shell (SHEL) also utilize stock options and restricted stock units as part of their executive compensation packages.
• The vesting schedules and holding periods are generally in line with industry practices to incentivize long-term performance and retention.
• The specific amounts and terms of the grants would need to be compared against peer companies to determine if they are above, below, or in line with industry benchmarks.

Stakeholder Impact

• Shareholders may view the equity grants as a positive sign of management's commitment to the company's long-term success.
• Employees may be indirectly impacted by the performance incentives tied to the equity grants.

Key Dates