Chevron has announced that it will relocate its headquarters from California to Texas over five years in a significant mid-term move. Reports say the oil conglomerate also intends to make top-tier personnel changes during the transition period.
According to the Friday announcement, the oil multinational company currently based in San Ramon will soon cite its corporate headquarters in Houston, which piques conversations around a recent trend in California's corporate sector.
Meanwhile, details of the report state that Mike Wirth, current Chairman and CEO of Chevron, and Vice Chairman Mark Nelson will be part of the first personnel relocating offices. Wirth and Nelson will change offices to Houston before 2024 closes, alongside other top staff members.
However, the news release says that positions supporting the company's California-based operations will maintain their San Ramon offices in the interim. Consequently, it anticipates minimal relocation impacts on other staff members based in California.
According to the official report, Chevron has about 2,000 staff members in California and 7,000 at the new headquarters base. The document stopped short of providing the rationale behind the decision to change base.
Why Are Companies Leaving California?
While the declaration follows a series of reports of companies leaving California, Elon Musk, CEO of Tesla, X, and SpaceX, has also taken to the public to disclose his intentions to relocate X and SpaceX headquarters to Texas. Reports say that Musk's decision was a response to a cultural/political decision by California Governor Gavin Newsom.
Governor Newsom signed a law that hinders school districts from requiring employees to inform parents when a child undergoes an identification change. According to California Assembly Republican Leader James Gallagher, Musk moved because of the new law. As many keep throwing around the expected inquiry, "Why are companies leaving California?". Several experts and confessions seem to identify causes like rising taxes and insecurity in California.
Further Personnel Moves
Chevron is also reportedly making further top-tier changes to its personnel coinciding with the move. Executive Vice President of Oil, Products, and Gas, Nigel Hearne, who will retire after 35 years of service, has a replacement in Nelson. The said handover is set to take place on October 1.
Another retirement news stems from Rhona Morris' office. The current Vice President and Chief Human Resources Officer will also retire after 31 years as Michelle Green, current Vice President of Human Resources, Oil, Products & Gas, succeeds Morris at the beginning of 2025.
Similarly, Andy Walz, President of America's Products, will serve as President of Downstream, Midstream & Chemicals from October 1, as he takes over from Colin Parfitt, who retires after 29 years.
Conclusion
Chevron is set to relocate from California to Texas over the next five years. Meanwhile, the company is also making top-tier changes to its staff members alongside the transition.