© Reuters. FILE PHOTO: Michael Wirth, Chairman and CEO Chevron Corp., speaks during an interview on CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 1, 2022. REUTERS/Brendan McDermid
By Sabrina Valle
HOUSTON (Reuters) – Chevron Corp (NYSE:) CEO Michael Wirth was paid $23.6 million in 2022, a 4% increase from the prior year while the median annual compensation for the oil giant’s employees fell 12%, a securities filing showed on Wednesday.
In addition to sky-high energy prices, cost-cutting measures including payroll reductions helped Chevron’s profit more than double in 2022 to a record $36.5 billion.
The median annual compensation for Chevron employees last year dropped to $161,488.
Under a new metric required by the U.S. Securities and Exchange Commission, Wirth’s “actual compensation paid” rose 60% to $86.7 million when equity awards, pension benefit adjustments and other compensation were factored in.
Chevron said the figure did not represent Wirth’s actual realized compensation as it includes equity-based awards – the value of which is not known until options are exercised or stock is sold.
According to shareholder advocacy group As You Sow, Wirth last year ranked 87th on a list of 100 CEOs that it says received unjustified pay levels.
CEO compensations are set to the rise 30% to an average of $38.1 million this year, according to As You Sow. Most companies approve compensations in the prior year.