Integrating Incentives into your Framework (NEW POST)

The Gist: Chevron’s incentive structure remains the most aligned with shareholder interests, while BP has the most room to improve—and is beginning to do so. Our mantra remains the same: de-emphasize ESG and focus on ROCE and other value-creating metrics that drive total shareholder returns. Importantly, we do not yet see the incentives in place for a true reserve replacement cycle that would lead to meaningful increases in capital spending.