A reliable contact here at San Ramon told me the corporation is considering reducing the company's 401k matching contribution from 8% to 2%, effective January 2016, in favor of continuing to pay the current dividend for two more years through December 2017. Depending on how things look at the end of 2017, the company may restore the percentage back to 8% or implement a new scheme.
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The last time we didn’t get bonuses was in 1998 when oil was around $11 bbl. Even back then, they never stopped the 401K match.
Here’s the Corp. Factor for the past 25 years. It has never been zero.
1990 1.15
1991 0.75
1992 1.15
1993 1.25
1994 0.90
1995 0.93
1996 1.20
1997 1.30
1998 0.90
1999 1.20
2000 2.00
2001 1.70
2002 0.75
2003 2.00
2004 2.00
2005 1.00
2006 1.50
2007 1.50
2008 1.30
2009 1.10
2010 1.50
2011 1.80
2012 1.50
2013 1.08
2014 1.05
Anonymous147674- because I'm sick of working with idiots who know nothing, don't get their work done, and require constant coddling for their tender emotional insecurities. "What other questions do you have?"
their generous 8% match (employee min 2% contribution, 4% with employee 1% contribution) was one of the big factors when I hired on 4 years ago in addition to still offering a pension plan. That will be a major setback for my 401k and I do not think it is fair.
In addition I am sure we will not see any bonus this year either so that is a double-whammy.
Say goodby to $30,000-40,000 (401k match & bonus) you were counting on when accepting a salary lower than what independents were offering.
To the comment below. Why do you feel it necessary to insult. It's not needed. Look in the mirror and check yourself
Anonymous147227- have you always been this dumb or is this a recent development?
The matching with stock stopped earlier this year. The match is now with cash to the same investment options you've selected for your deferral to be allocated to.
Help me with this. Chevron matches with stock not cash. So it's only on paper transfer. I understand buying back shares to increase SH equity but matching with stock is done not to effect cash flow correct?
http://insiders.morningstar.com/trading/executive-compensation.action?t=CVX
An easy way to save money would be to cut executive compensation
Name/Title 2010 2011 2012 2013 2014
Key Executive Compensation 47,805,470 71,719,430 75,305,606 54,613,220 62,267,466
John S. Watson/Chairman of the Board and Chief Executive Officer 16,260,526 24,726,716 32,227,122 24,017,303 25,970,417
Patricia E. Yarrington/Vice President and Chief Financial Officer 6,846,893 11,288,589 10,409,044 7,983,140 9,781,357
George L. Kirkland/Vice Chairman of the Board and Executive Vice Presiden 12,362,042 16,512,763 18,754,718 11,060,034 12,143,817
Michael K. Wirth/Executive Vice President, Downstream and Chemicals 7,859,890 11,378,790 8,838,468 6,402,014 8,487,241
R Hewitt Pate/Vice President and General Counsel 4,476,119 7,812,572 5,076,254 5,150,729 5,884,634
Reducing 401k match is one of the easiest ways to reduce staffing costs without cutting staff. Employees deal with it better than other types of cuts because it doesn't impact their take home pay or immediate benefits (like how raising health insurance deductibles would). It is also very easy to implement. Of course, this means it's already been decided that there will be no bonus and no increase to the pay structure. A 0 corporate factor combined with reducing 401k match to 2% would easily cut staff costs by 15% without additional staff reductions or severance costs. It's almost preferable to layoffs in the short term. Layoffs plus 0 corporate factor and reduced 401k matching should be able to reduce staffing costs by a third which, if I remember correctly, lines up with the $60 oil scenario. Someone please confirm.
Because Chevron has a sufficient debt capacity and can borrow they did not plan much on this. Watson in no way saw 40-50 oil in the future. They are cutting the 401k match and will underfunded the pension for 24 months. If oil does not rebound by June 1 2016 (target for all ROMs to be completed) furlough will go into effect. So yes everything is truly on the table. Also I will repeat this verbatim.....from a senior leader....we will not see Gorgon operational for 14 months. The big spend is done on Gorgon and we have to follow through with results. If that project lingers on for 2 more years it will at least be the death of leadership.
I knew when the company made all these aggressive production growth targets that there was no way they would be achieved. I say all the executives that drummed these up work for free for a few years.
Why doesn't 'ol J Dub give himself a haircut?
I heard something to this effect on Monday this week. The company's cash flow problem is sparking many ideas at the corporate level. Dividends are paramount in their minds and the employee is going to pay the price one way or another. If they cut the 401k match, even for 1 year, I'll be looking for a severance check. I don need this.
Seriously at this point I don't care, get through rom, save save save, sell house, move to CO and start a green enterprise. All this market up/down down down stuff is enough to drive you mad.