Chevron Corp CVX Chief Executive Officer Michael Wirth saw a significant increase in his pay in 2023, reaching $26.5 million, marking over 12% rise from the previous year.
This rise in compensation stands above the median pay raise for the company’s employees, according to a filing disclosed on Wednesday.
The disclosed numbers highlight a gap between executive compensation and the earnings of Chevron’s workforce, consisting of 45,511 employees.
The median annual pay for Chevron employees worldwide climbed to $175,673 in 2023. In 2022, the medium compensation for workers had declined 12% to $161,488, while Wirth’s pay had increased 4%, Reuters reported.
Chevron attributed Wirth’s compensation to his successful execution of the company's financial priorities, including dividends, maintaining capital discipline in traditional and new energies, reducing debt by over $4 billion, and repurchasing $14.9 billion shares.
Wirth’s compensation was also positively influenced by Chevron’s proposed acquisition of oil producer Hess Corp HES, which strengthened the advantaged portfolio.
However, this acquisition faces scrutiny from rival Exxon Mobil Corp XOM through an arbitration process.
Notably, Chevron allocated a record $26.3 billion to shareholders through dividends and buybacks in 2023, reflecting an 18% increase from 2022.
Another noteworthy executive, Mark Nelson, who was promoted to vice chair, received a substantial pay increase of 61.5% in 2023, bringing his compensation to $12.2 million.
Price Action: CVX shares are trading lower by 0.53% at $161.15 on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Jonathan Weiss on Shutterstock
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