So in XOM we don't have variable pay but I heard Chevron have CIP aka variable pay wich also contributes towards pension and saving plan calculations. That sounds nice. How does CIP work? Is it your monthly pay * the CIP factor? So say if CIP factor is 2 then you would receive extra 2 months salary?
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afif: CIP number is one of several factors including grade that go into the bonus calculation, but it tends to be the most variable. As an example for a mid career petrotech the numbers might be 25% salary * CIP (corporate)* company (typically 0.95 to 1.05)* individual (commonly 0.75 to 1.25). For higher grades there is also a stock option component added to this. I am retired so the calculations might have changed a bit over the last few years, but it is still probably something like this.
So for an average/good performer, what does CIP 1.4 approximately equal to? Like 14% of you annual base salary?
All your windfall CIP is going to $75B stock buy back since not one safety metric was met in 2022. Sorry to disappoint you.
CIP is yearly bonus, chevron salary is lower than XOM, so the intend is ti catch up total pay and compensation through 401K, pension and CIP.
I'm OP. Thanks for the answer. I just learned that Chevron compensation seems stronger... Higher saving plan matching, plus variable pay. XOM used to promise a govt level "job security" but we all know that's just a mirage. Grass isn't always greener but always good to learn and compare notes.
I’m glad I don’t work for Exxon
Salary x personal bonus multiplier x corp factor
Each psg has a range for the bonus multiplier, and where you fall in that range is linked to performance.