2002 <strong>Chevron</strong>Texaco Corporate Responsibility Report Social IssuesTraining & DevelopmentWages & BenefitsBuilding CapabilitiesDeveloping and nurturing employee talent is important for our longtermsuccess. <strong>Chevron</strong>Texaco 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, <strong>Chevron</strong>Texacoaround 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, <strong>Chevron</strong>Texaco alsohas designed programs specifically aimed at developing managers.For example:> The <strong>Chevron</strong>Texaco Leadership Forum (CTLF), one of our mostsuccessful leadership development programs, is aimed at highpotentialmanagers. CTLF seeks to increase participants’ knowledgeof <strong>Chevron</strong>Texaco’s overall strategies and objectives and provide aforum for information sharing and networking.> The <strong>Chevron</strong>Texaco Advanced Management Program is a three-weekcourse that includes an on-site development assignment within<strong>Chevron</strong>Texaco’s operations. In 2002, some 48 managers completedthe program.Attracting, Retaining and Motivating Employees<strong>Chevron</strong>Texaco 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, <strong>Chevron</strong>Texaco’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 <strong>Chevron</strong>Texaco Management Incentive Plan annuallypays a cash award for performance to senior-level managers. The<strong>Chevron</strong>Texaco 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 <strong>Chevron</strong>Texaco Corporation. All Rights Reserved.29
2002 <strong>Chevron</strong>Texaco Corporate Responsibility Report Social IssuesEmployee Dispute ResolutionMaintaining a Productive Workplace<strong>Chevron</strong>Texaco strives to maintain a productive work environmentwhere employees are treated with dignity and respect, which providesindividuals with recognition and opportunities for growth and whichfosters collaboration and open communication among co-workers andbetween employees and their managers.If disputes or interpersonal conflicts arise, employees can use the company’sdispute resolution programs, which are designed to offer a safe,fast and fair way to resolve disputes. Through our ombudspersonprogram, employees can contact a <strong>Chevron</strong>Texaco ombudsperson, whois responsible for providing neutral, confidential help and problemsolvingtechniques. <strong>Chevron</strong>Texaco’s ombudspersons adhere to the Standardsof Practice and Code of Ethics of The Ombudsman Association.Employees also can access the company’s Steps to Employee ProblemSolution program. The program, developed by a team of employees, isdesigned to offer a safe, fast and fair way to resolve disputes early andin a neutral setting.The company also provides a 24-hour <strong>Chevron</strong>Texaco hotline that canserve as a problem-solving resource or mechanism for employees toreport issues or concerns. The hotline is accessible to all employees;individuals not fluent in English can use the hotline’s translation service.All calls are confidential, and employees can choose to make theircalls anonymously. Issues raised on the hotline are forwarded to theappropriate individuals within the company for resolution.© 2003 <strong>Chevron</strong>Texaco Corporation. All Rights Reserved.30