The ratio of the annual total compensation for the CEO to the annual total compensation of our median compensated employee was 236:1 for 2019, calculated
by dividing our CEO 2019 annual total compensation of $33,070,662 by the 2019 annual total compensation of our median compensated employee of $140,063.1
The SECs rules for identifying the median compensated employee and calculating the pay ratio based on that employees annual total compensation
allow companies to choose from a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and assumptions that reflect their employee populations and compensation practices. As a result, the pay ratio reported by other
companies may not be comparable with our pay ratio reported above.
Our CEO to median compensated employee pay ratio is a reasonable estimate
calculated in a manner that is consistent with SEC rules based on a combination of compensation data from global payroll and human resources records and using the methodology, assumptions, and estimates described below. As permitted by SEC rules,
for our fiscal 2019 pay ratio reported above, we used that same median employee that we used for our fiscal 2017 and 2018 pay ratio, as we believe there has been no change in our employee population or employee compensation arrangements that would
significantly impact our pay ratio disclosure. We identified the median employee used for our fiscal 2017, 2018, and 2019 pay ratio disclosures using our employee population as of October 1, 2017, which included approximately 52,953 individuals
located in 54 countries, of which 25,564 employees were on U.S. payroll and 27,389 were on non-U.S. payrolls. Utilizing the de minimis exemption as permitted by SEC rules, we excluded approximately
4.1 percent of the total employee population in the non-U.S. jurisdictions with the smallest employee populations. As a result, we excluded 2,164 individuals in 38
non-U.S. countries. The excluded countries and their employee populations were as follows: Azerbaijan (9), Bahrain (9), Belgium (132), Bermuda (6), Botswana (8), Cambodia (34), Colombia (289), Democratic
Republic of Congo (2), Denmark (5), Egypt (53), El Salvador (107), Germany (13), Glorioso Islands (1), Greece (14), Guatemala (50), Honduras (37), India (1), Italy (4), Japan (140), Kazakhstan (213), Malaysia (186), Mexico (48), Myanmar (4),
Netherlands (107), Norway (11), Pakistan (110), Panama (50), Poland (1), Republic of Congo (34), Russian Federation (47), South Korea (10), Sri Lanka (76), Sweden (1), Taiwan (1), Turkey (4), United Arab Emirates (52), Venezuela (228), and Vietnam
(67). As a result of these exclusions, the employee population used to identify the median employee was composed of 50,789 individuals. We included employees from the following non-U.S. countries: Angola,
Argentina, Australia, Bangladesh, Brazil, Canada, China, France, Indonesia, Kuwait, Nigeria, Philippines, Singapore, South Africa, Thailand, and the United Kingdom.
We identified the median employee using 2017 total cash compensation as our consistently applied compensation measure, calculated for employees as the sum
of (i) 2017 annual base salary determined as of October 1, 2017, and (ii) the actual annual cash bonus paid in the first quarter of 2017; provided, however, that for hourly employees who work for Chevron Stations Inc., their total cash
compensation was instead based on actual wages and bonus paid during 2017. The compensation in non-U.S. currencies was converted to U.S. dollars using an average foreign exchange rate for the month of October
2017.
Our pay philosophy is to pay our workforce competitively and equitably; we offer competitive pay packages across all geographies based on
industry-specific compensation in the local market, job responsibilities, and individual performance. In general, our compensation programs are applied consistently across the workforce, and compensation targets are set using a consistent
methodology regardless of job function, with a higher percentage of pay-at-risk provided to executives. We believe both our CEO and our employee compensation packages
are appropriately structured to attract and retain the talent needed to deliver on our business plan and to drive long-term stockholder value.
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The annual total compensation of the median compensated employee is calculated in the same manner as CEO annual total
compensation in the Summary Compensation Table.
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Chevron Corporation2020 Proxy Statement
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