Chevron Press Release - Chevron Stock Exceeds $75 Per Share
SAN FRANCISCO, June 18, 1997 - Chevron Corp. told its employees today they could exercise performance stock options granted in 1996 because the company's stock closed over $75 a share for three consecutive days.
It's the first time in company history that stock options - typically granted only to senior managers - have been granted to nearly all employees.
"This is a great day for both employees and stockholders," said Chevron Chairman Kenneth T. Derr. "Our shares are up almost 50 percent from January, l996, when we granted employees the options. That's a tribute both to Chevron's over-all strength and the contributions of our employees worldwide."
At his annual, company-wide teleconference for employees in early 1996, Derr announced that Chevron for the first time would grant nearly all employees 150 stock options that could be exercised when the stock closed at $75 or more for three straight days.
Chevron's stock reached 76 on Friday of last week, rose to 76 7/8 on Monday and closed Tuesday at 76 1/8. Employees have until March 31, l999, to exercise the options, which were valued at 51 7/8 when granted last January.
The value of an option is the difference between the grant price and the price when the option is exercised. If Chevron's price holds at yesterday's close, an employee with an option to purchase 150 shares would realize a gain of $3,637.50, before withholding.
Triggering the options marks the third time in recent years that Chevron has used non-traditional compensation tools to recognize the company's financial performance.
Chevron in 1994 paid a 5 percent companywide bonus for outperforming major oil industry competitors in total stockholder return. It paid a 4 to 6 percent bonus this year to recognize combined 1996 achievements in operating cost controls, improved safety and record earnings.
"These are highly competitive times, and that's not going to change," said Derr. "Everyone is working harder and companies need to recognize that."
"Employees who are working as a committed team share with stockholders a sense of ownership," Derr said. "I'm proud of them and I'm looking forward to the future that is being so positively shaped by our employees."
Updated: June 1997