Corporate Governance

Chevron has a long tradition of commitment to good corporate governance. Directors are elected annually and committee assignments and chair positions are routinely rotated. Four new directors have been added since 2004. A lead director chairs executive sessions of the independent directors and works with the chairman on the schedule and agendas for board meetings, as well as other matters.

In 2006, we revised our Corporate Governance Guidelines to provide greater specificity about our ongoing director education efforts, the board's periodic review of corporate governance documents, and our goal of providing greater than 50 percent of board compensation in equity.

The board also adopted the Policy on Stockholder Proposals Receiving Majority Approval, which provides for board reconsideration of any proposal not supported by the board that receives a majority vote at the Annual Meeting of Stockholders. We routinely communicate with proponents of stockholder resolutions, as noted in the Stakeholder Engagement section.

We regularly review and assess governance trends and revise our policies as appropriate. Comprehensive information to investors and others on our governance practice is available elsewhere on our Web site.