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O'Reilly Has Big Payday

SAN FRANCISCO -- ChevronTexaco Corp. more than doubled the paycheck of CEO David O'Reilly last year, rewarding him with a $3.2-million bonus for engineering a deal that created the nation's second-largest oil company while setting the stage for 4,500 job cuts.

Besides giving O'Reilly a special bonus for overseeing Chevron's $39-billion takeover of Texaco, the company also paid its chairman and chief executive $970,833 in salary and a $1.8-million award for beating the board's profit goal last year, according to documents filed Monday with the Securities and Exchange Commission.

The $5.97 million in salary and short-term bonuses represented a hefty raise from the $2.86 million that O'Reilly received in 2000, his first year as CEO. During 2001, ChevronTexaco said it had increased O'Reilly's salary 11 percent from $900,000 to $1 million.

In 2001, ChevronTexaco also paid O'Reilly $1.14 million under a long-term compensation plan measuring the company's performance dating back to 1999 and awarded him 150,000 stock options that will be worth $21.2 million if the company's shares appreciate by 10 percent annually during the next decade.

ChevronTexaco handed out a total of $4 million in merger bonuses to its next four highest-paid executives. Vice Chairman Glenn Tilton and Vice President John Watson each received $1.5 million merger bonuses, while Vice Chairman Richard Matzke and Vice President Peter Robertson each received $500,000.
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