Chevron Corp CEO Watson to step down
Replacement Mike Wirth has experience in refining, where costs are regularly scrutinised
Chevron Corp Chief Executive John Watson will step down by the end of next month and is likely to be replaced by Vice-Chairman Mike Wirth, a source familiar with the matter said on Tuesday.
The unexpected shake-up at one of the world’s largest oil and natural gas producers comes as pressure grows on the industry to further cut costs and control spending.
In Wirth, Chevron would pivot to a leader with experience in refining, where costs are regularly scrutinised down to the fraction of a penny.
The move would copy rival Exxon Mobil Corp, which earlier this year named refining expert Darren Woods as its own CEO, a step widely seen as prioritising cash generation to protect payouts to shareholders above pricey exploration projects.
The CEOs of rivals Total and Royal Dutch Shell also have experience in refining.
Chevron’s shares are up about 35 per cent since Watson took over as CEO in January 2010, but the Dow Jones Industrial Average has more than doubled in that time. The company’s shares are trading at the same level they were in early 2011.
Chevron spokesman Kent Robertson declined to comment.
Neither Watson nor Wirth responded to requests for comment.
The California-based company is emerging from a global commodity price slump and is beginning to reap the fruits of a multibillion-dollar expansion spree.
The exit is not acrimonious and Watson sees it as an opportunity to hand over the reins of a growing enterprise to Wirth, according to the source.