Chevron Chairman David O'Reilly received a 2006 compensation package valued at $13.5 million for steering the oil company to a record profit while many motorists and politicians were angry about soaring energy prices.
The company detailed its payments to O'Reilly in documents filed Monday with the U.S. Securities and Exchange Commission.
Besides a $1.62 million salary, Chevron awarded O'Reilly stock options and other awards that had an estimated value of $8.1 million on the day they were granted. He also received $3.5 million under a non-equity incentive plan and $228,617 for miscellaneous compensation that included $88,923 for home security, company cars, air travel and financial planning.
The Associated Press bases its calculations of executive pay on salary, bonuses, incentives, above-market returns on deferred compensation and the values of stock options and other awards granted during the year. They may differ from the total compensation listed by the company.
Chevron said O'Reilly's 2006 pay was "relatively unchanged" from the previous year. Under new SEC rules mandating more extensive disclosures about executive pay, companies are not required to provide specific comparisons between the 2006 and 2005 figures.
O'Reilly, Chevron's chief executive officer since 2000, made an additional $17.1 million last year from long-term incentives. He realized a $9.3 million gain by exercising 487,200 stock options and pocketed another $7.8 million on a stock reward measuring his performance during the three years ending in June 2006.
Like its industry peers, Chevron benefited from oil prices that approached $80 per barrel last summer before dropping late in the year. The decline still was not enough to prevent Chevron from posting its third consecutive year of record earnings.
While Chevron's 2006 profit of $17.1 billion helped fuel consumer and political outrage over high gasoline prices, the performance kept investors happy as the company's stock price climbed by nearly 30% last year.
A shareholder proposal is seeking a change in Chevron's bylaws to require the company to separate the jobs of chairman and CEO to foster more independence between management and the board of directors. Several other major companies already have embraced the concept.
Chevron opposes the proposal, which is scheduled to be presented at its annual meeting April 25.