engaged leaders are working to mobilize chevron’s human ingenuity to solve the most complex energy challenges
As a company that touches the lives of billions of people around the world and provides the necessities of modern life, our responsibilities are profound. Today, employees, partners, customers and investors expect more from the corporation and its Board of Directors than ever before.
The Chevron Board not only guides enterprise direction, but also continuously assesses internal and external views on a variety of topics, from energy market conditions and geopolitical developments to technology trends and competitor actions. Our Board has a proven track record across a broad range of experiences, including leadership of global businesses and international affairs; expertise in science, technology and engineering; extensive knowledge of governmental, regulatory, legal, environmental and public policy issues; and complex financial management, capital allocation and reporting processes.
Diversity of gender, ethnicity, age, skills and experience fosters the different perspectives that make our Board’s oversight and decision making more effective.
The Chevron Board meets six times a year, often including field visits that provide insight into our human capital and operations. In 2018, the Board visited Argentina for an in-depth look at Chevron’s efforts to advance the development of Vaca Muerta – one of the largest deposits of shale oil and gas in the world – and support our company’s continued investment and commitment to economic growth in the area. During the visit, the Board met with members of the Argentine government and spent a day at Loma Campana, the flagship shale development in Vaca Muerta.
lead director: one-on-one
How does the diverse background of Chevron’s Board help the company navigate the world’s energy transition?
For more than a century and a half, the world has been in an energy transition as the first and second industrial revolutions have mechanized production, agriculture and other aspects of modern life. These advances have been fueled by energy as a primary input, and they set humanity on a track to continuously seek more affordable, reliable and ever-cleaner energy inputs in order to meet increasing global demand created by a growing population and ambitions for prosperity.
The diverse experience and expertise of Chevron’s Board play a critical role in helping the company navigate the challenges and opportunities of this transition. By bringing together unique skills and qualifications developed through leadership in academia, business, finance and technology, as well as a diversity of gender, age, background and ethnicity, the Board is well positioned to test company strategy on an ongoing basis. As part of our duty to provide robust oversight, the Board also meets with external experts to add new perspectives regarding the evolving energy landscape. Through these efforts, the Board continuously drives Chevron’s strategy and ensures that risks are understood and mitigated.
Our Board is highly focused on human capital management issues, reflecting our belief that Chevron’s greatest resources are human ingenuity and sense of purpose. To ensure an engaged and inclusive work environment that values safety, The Chevron Way, and diversity of our employees’ talents and experiences, the Board reviews and approves executive compensation, executive selections and succession plans, and diversity and inclusion data. We regularly meet with employees at all levels and in different locations to observe firsthand how our investments in human capital are succeeding.
An engagement team of Chevron officers and experts held productive meetings with stockholders in 2018 to discuss a variety of topics – from financial performance to environmental, social and governance matters. I participated in some of these engagements. Our investors took a strong interest in three areas: managing risks associated with climate change; ensuring transparency of lobbying practices and processes; and having more insight into human capital management.
We are taking important actions in response to this dialogue. In February 2019, we announced new methane and flaring intensity reduction targets as we updated key sections of Climate Change Resilience – A Framework for Decision Making. We also took steps to provide more transparency in our lobbying activities by lowering the disclosure threshold – from $500,000 to $100,000 in annual dues – for trade association memberships wherein a portion of our dues may be used for lobbying purposes. And we are committed to more disclosure in our annual Corporate Responsibility Report on issues such as gender equity, employee well-being, and recruitment and retention.
To enable Board refreshment and regular rotation of Committee chairs, Directors are elected annually and serve for a one-year term or until their successors are elected. In addition, every year, the Board and its Committees conduct a comprehensive self-evaluation, and I lead a discussion of the results with the full Board. This year, we augmented our evaluation process to make evaluations of individual Director performance more rigorous.