Chevron says Wirth to succeed John Watson as CEO

Chevron on Thursday confirmed that Michael Wirth will replace John Watson as chief executive and chairman of the second-largest US oil and gas group effective February 1.

Mr Watson was expected to step down after 37 years at the company, including eight as chairman and chief executive, amid soaring cost overruns at the some of the company’s largest projects. The announcement confirms previous reports from the FT and others.

Mr Wirth, who is currently vice-chairman of the board and executive vice president of midstream and development, joined Chevron in 1982 as design engineer. He earned most of his experience in the refining and marketing operations, which prioritised savings and boosting efficiency.

His appointment comes as energy groups focus on cost-cutting amid a slump in oil prices.

“Mike is a proven leader who is ideally suited to lead Chevron into the next chapter of our history,” said Mr Watson, who is retiring. “He has the right values, knowledge and experience, and has established a strong record of accomplishment in his 35 years with the company.”

Ronald Sugar, lead independent director for Chevron’s Board, said of the transition:

John has done an outstanding job in guiding the company through one of the industry’s most tumultuous periods. During John’s tenure, Chevron’s stock has outperformed its peer companies by a wide margin and he leaves the company well prepared for the future.

Mike is ready to be Chevron’s next chairman and CEO. He has the right business experience and leadership qualities to extend the company’s success, and the board has full confidence in his ability to do so.

The company also announced that Mark Nelson will become vice president of midstream, strategy and policy effective February 1.