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2002 ChevronTexaco Corporate Responsibility Report Social IssuesTraining & DevelopmentWages & BenefitsBuilding CapabilitiesDeveloping and nurturing employee talent is important for our longtermsuccess. ChevronTexaco seeks to take an integrated and disciplinedapproach to providing employees with training and other opportunitiesto help them develop the skills, knowledge and experience necessary tocontinue to expand their capabilities and contribute to the success ofthe company.Managers identify the skillsrequired to achieve companygoals, assess employee talent,identify skill gaps and createdevelopment plans for talentedindividuals. At company sitesIn Lafayette, Louisana, ChevronTexacoaround the world and online,employees attend a technical trainingcourse.we offer training courses rangingfrom compliance and technicaltraining to cross-cultural andcareer-planning courses. Individual operating companies sponsor additionaltraining, often in partnership with schools and other institutions.Developing LeadersRecognizing the importance of effective leaders, ChevronTexaco alsohas designed programs specifically aimed at developing managers.For example:> The ChevronTexaco Leadership Forum (CTLF), one of our mostsuccessful leadership development programs, is aimed at highpotentialmanagers. CTLF seeks to increase participants’ knowledgeof ChevronTexaco’s overall strategies and objectives and provide aforum for information sharing and networking.> The ChevronTexaco Advanced Management Program is a three-weekcourse that includes an on-site development assignment withinChevronTexaco’s operations. In 2002, some 48 managers completedthe program.Attracting, Retaining and Motivating EmployeesChevronTexaco seeks to offer a competitively based total remunerationpackage designed to attract, retain and motivate a highly competent,global work force. We provide compensation and benefit programs thatare locally competitive and tied to the performance of the individual,his or her business unit and the company. The company’s goal is tomaintain equitable salaries based on job responsibilities and performance.In 2002, ChevronTexaco’s total global payroll was approximatelyUS$2.9 billion.Linking Pay and PerformanceOur Performance Management Process is the foundation of our compensationpractices. The process requires the annual evaluation of employeesnot covered by union contracts and may result in merit pay increases forthose employees. Many business units have rewards and recognition programsthat provide cash and noncash awards for exceptional performanceon specific projects.One element of the overall pay and benefits program is variable pay,which can provide cash payouts that are in addition to base pay andare based on a variety of metrics, including the company’s performanceand, for many employees, environment, health or safety measures. Theavailability of such Success Sharing programs and how they are structuredvaries across locations and depends on a variety of factors, suchas local customs, regulations and the specific competitive compensationenvironment. The ChevronTexaco Management Incentive Plan annuallypays a cash award for performance to senior-level managers. TheChevronTexaco Long-Term Incentive Plan, which rewards leaders forachieving company goals and creating stockholder value, is designed toalign management interests with stockholders’ interests over a multiyeartime horizon.> A new supervisor program is provided for first-time managers, and669 employees completed the course in 2002.© 2003 ChevronTexaco Corporation. All Rights Reserved.29