strategic-management

284 LINDA HERKENHOFF
EXHIBIT 2 Board of Directors
Chairman and Chief Executive Officer: David J. O’Reilly
Vice Chairman of the Board: Peter J. Robertson
Board of Directors: Samuel H. Armacost, Linnet F. Deily, Robert E. Denham, Robert
J. Eaton, Sam Ginn, Enrique Hernandez Jr, Franklyn G. Jenifer, Sam Nunn, Donald
B. Rice, Kevin W. Sharer, Charles R. Shoemate, Ronald D. Sugar, Carl Ware
Laymon, Zygocki and Director of Global Security report to Vice Chair Robertson; all
other officers and General Manager of Global Diversity report to Chairman O’Reilly
unless indicated otherwise
Executive VP Technology and Service: John Bethancourt
Reporting to this position—Corporate Aviation Services, Energy Solutions, Oronite,
Mining Inc.
Executive VP Global Upstream and Gas: George Kirkland
Reporting to this position—E&P: Asia Pacific, Eurasia
Executive VP of Strategy and Development: John Watson
Reporting to this position: Project Resources, Procurement
Executive VP Global Downstream: Michael Wirth
Reporting to this position—Global: Lubricants, Marketing, Manufacturing,
Supply & Trading
Source: Adapted from www.chevron.com (2009).
United States and Asia. Of the 10,000 retail outlets in the United States, Chevron only
owned a few hundred by year-end 2008. Chevron has had 21 consecutive annual increases
in dividends, with dividends growing at an average annual rate of 12 percent over the past
5 years. The growth rate is 7 percent for the last 21 years. At the end of March 2009, the
dividend yield was about 4 percent. Over the last five years, cash returned to stockholders
has totaled more than $46 billion, $25 billion in share buybacks and over $21 MM in
dividends. The return on average stockholders’ equity is 29.2 percent for 2008.
Chevron’s balance sheet had a debt ratio at year-end 2008 of just over 9 percent. Last
year’s return on capital employed (ROCE) for the corporation was 26.6 percent, and has been
over 20 percent for each of the last 5 years. In 2008, Chevron’s ROCE was the second highest
in its five-company peer group (ExxonMobil, Royal Dutch Shell, BP, and ConocoPhillips).
Sales and other operating revenues totaled $265 billion with an overall net income of $23.9
billion for 2008. The net income results were the highest annual earnings in the company’s
history. The income statements and balance sheets are provided in Exhibits 3 and 4.
In 2008, Chevron’s Exploration added 1.7 billion barrels of oil-equivalent resources,
resulting in a drilling success rate of 49 percent. The company produced 2.53 MM net-oil
equivalents barrels per day; about 75 percent of those barrels came from outside the United
States in more than 20 countries. The company achieved a reserve replacement in 2008 of
146 percent.
In March 2009, Chevron was presented with the HART Energy Publishing Refiner
of the Year Award, which is based on achievements in the following categories: cleaner
environment, investment and corporate growth, and lastly vision.
Vision
The Chevron vision is to be the global energy company most admired for its people,
partnership and performance. That vision means Chevron will strive to: provide energy
products vital to sustainable economic progress and human development throughout the
world; have superior capabilities and commitment both at the individual employee level
as well as at the organizational level; deliver world-class performance; and earn the
admiration of all our stakeholders—investors, customers, host governments, local
communities and Chevron employees—not only for the goals but how they are achieved.