Thread regarding Chevron Corp. layoffs

Mutual funds own around 70% of cvx ordinary stock. The largest single private investor owns a fraction of 1%. So, if there is a shareholders’ vote, institutional investors will win any day of the week if it’s 1 vote per share.

Investors are fickle, not loyal. No dividend will keep anyone loyal to a stock. At some point, a continual upward moving dividend will be insurmountable for any company that doesn’t continually produce higher and higher profits to justify the upticks on dividend yield. Do you think the investors will stay by your side when the company has nothing else to do but cut the dividend? Chevron better wise up and seriously take the early path Royal Dutch Shell did. It’s better to pause any dividend increases now, than have no choice later but to lower it. The longer Chevron keeps dilly dallying, the harder the repercussions when it has no choice. Typical Chevron management style, too slow or afraid to make important decisions.

Because the only reason why investors would put any dollars in an industry that is ultimately doomed, is for the benefit of short term dividend returns. As long as dividends keep increasing year over year, then the investor party keeps on going. And yet, the first cracks in the fossil fuel delusion (that admittedly has powered the world economy for over 150 years) are appearing already left and right. And very soon (within the next 10 years) the music will come to a sudden stop, the price for a barrel of oil will go through a series of spasms of extreme low and high, investors will flee like rats, and demand for fossil fuels will collapse, squeezed on both ends by ever more cost effective renewable energy and the global calamity of climate change. I can't wait for the story to unfold. Such a great drama; where is the popcorn!

The consensus of shareholders agree or disagree with the CEO and BOD, @2ris. What YOU decide is if you care to stay or go. It’s not you who picks or replaces anyone, JACKBOT. Just shows the arrogance of people like you. Royal Dutch Shell recently reduced their dividend substantially. What happened there? Did the CEO or the BOD get fired? Hell no, so go pontificate elsewhere you pompous fool.

Shareholders OWN the company and CONTROL the company thru their votes...They can FIRE the Board and Management and employees. Shareholders should vote in THEIR SELF INTEREST, if their self interest is improved by reducing the dividend then they will support BOD and MANAGMENT. I OWN more oil company shares than MOST SENIOR MANAGERS of the companies I own. I would vote to replace BOD and MANAGMENT if dividend is decreased without first getting their CAPEX and OPEX under control. That means LAYOFFS for people who are not needed/essential. But it also means thinking about the LONG TERM and keeping those who WILL be needed when oil prices recover. BALANCING ACT THAT SHAREHOLDERS PAY MANAGEMENT TO UNDERTAKE. If they fail, we remove management and BOD.

@2djc, keep parroting the mantra about the dividend will never be cut. As much as any stockholder would like that, the day of reckoning will come. Hell or high water will come. The stock market never goes up continually, so why is it to expect that the CVX dividend will continually rise? At such a high yield, the dividend is not sustainable. If not cut, it should at least be paused. The chasing the title of Dividend Aristocrat will come to bite Chevron hard. The day will come. You can deny it all you want, but the dividend will lose that title.

We need the layoffs. PRC, ETC, and UC have increased specifications so high that on the average project we do not make any return. Hopefully we can get back to the basics and operate lean and mean. Look around there is 1 true technical person for 4 slick talker.

Chevron is on a prestigious list of stocks that have a longstanding history (decades) of raising the dividend every year. “Dividend Aristocrats.” The fear of stock analysts is the beginning of wisdom, when you’re an executive. MW would sacrifice his firstborn before cutting the dividend, or even skipping a year without increasing it. It hurts to know that the dividend is valued more than us, but it’s just a fact that we have to accept. Armed with this knowledge... load up on the stock when it takes its next nosedive. Remember when the stock was at $55 in March? The dividend yield is over 10% at that price. Feel safe (well, as safe as you can when investing) to buy all the stock you can afford because you know that dividend is the sacred cow that will absolutely be sustained through hell and high water.

Because this is a long term reduction in oil and gas activity. The People are not needed, but long term shareholders are needed. So the Dividend stays. Unnecessary employees must go. No different than Macys or JC Pennys. When the work slows down, expenses MUST be cut

When you discuss shareholders you first need to know what you’re talking about. If the company goes into receivership and you go to the liquidator and say you’re a shareholder, and therefore an owner, they would laugh you out of the office and put you at the back of the queue of who is entitled to what.

If you go before the Board of Trustees and say I’m the owner - they would ask where your legal title is: you won’t have it because they do as trustees for the legal owner.

A shareholder owns an equitable interest in the company which is a lot different to having a legal right to it.

@iav no worries mate, we makin' progress if only 6 people don't understand basic investment valuation metrics.

Chevron isn’t a co-op. Go work for REI.

** Why is Chevron stock so much higher than Shells, Exxon, BP, Total etc.? **

Do you even enterprise value, bro?

If you owned significant stock in major oil companies you wouldn’t be trolling a layoff board. More likely, you are another unemployed keyboard assailant dreaming of better things while living in your mom’s basement with no prospects and no life,

Why don't we cut the dividend? The shareholders OWN the company. All Chevron employees from MW to the newest hire on the payroll work for the shareholders. They are the people who's interest will be served as priority #1. When you are in charge of running a business you don't cut the owner's income quickly when times get tough, you cut in all other areas that make practical sense before you even consider reducing the money that is returned to the owner (the dividend). Our company is no where even close to needing to cut the dividend. Frankly put, the dividend is more important then many of us (the employees). Sure, we absolutely need employees but we don't need 100% of the current staff to do business, not even close. Employees will be laid off, hired, fired, laid off and rehired again and again before the dividend will be cut. It is that simple. That's why as an employee you should understand your place in the hierarchy. You are no where near as important as the dividend. An unpleasant fact perhaps but a fact nonetheless. So if you can't beat em, join em, buy some company stock in your 401K.

I own significant stock in several major oil companies and I can tell you this RDSA (Shell) recently cut their dividend and as a result, I will never buy their stock again. If you can't survive the tough times without cutting the dividend you are not worthy of handling my hard earned income. Leaders need to run their company in a conservative manner which allows the dividend to be intensely protected, not at ALL costs mind you but not readily either. If you can't weather a year or so of pain your business needs to be re-tooled and your debt to income ratio improved. Shell burned their bridge with many investment firms in 2020. IMO neither Chevron or Exxon will be cutting their dividend anytime soon. Chevron has a better debt to income ratio than Exxon and is about lean out our organization in a big way.

Why is Chevron stock so much higher than Shells, Exxon, BP, Total etc.? Because global investment banks, huge retirement funds and hedge funds know they can count on Chevron to pay the dividend. They know that even with the ups and downs of the stock price over the long haul they will be paid well to own our stock. Its a safe bet.

Why don't executives cut their pay? Power, control and elitism. It would be a nice gesture for sure, but not at all likely to happen. They are captains of industry, from their point of view we are elemental components of a corporate human resource who's role is to serve at their discretion.

Why are the same people in charge? They fought and clawed, wheeled and dealed, maneuvered and shoved their way to the top. You think they are going to give up their prize? Their position was hard won through decades of struggle to the top. Not a chance they just roll over. Its a dog fight with a pot of gold to the victor. The corporate ladder is a battleground.

Well, I know mine is just one perspective but for what it's worth, there you have it.

Nah - you must be from Uranus @ald

Bad Idea. See how much hemorrhaging occurs if they cut the div. I't won't be pretty. Yea, You all will be seeking Alpha alright. And Beta, and Gamma, etc. etc. Right out the door.. This is a layoff's site isn't it? Sometimes I wonder if you guys have just discovered the internet.

Agree completely, and the company would look better for it. In light of the pandemic.

Thank you you @uuj

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