Chevron Texaco Merger

What do you think the real reasons for Chevron Texaco unification be? Unlike previous optical fusions in the vegetable oil industry, it appears that the Chevron-Texaco merger was instigated much from a lack of size, than from a financial advantage. The cardinal companies on a stand-alone basis could not effectively struggle with the merged might of the likes of BP Amoco Arco, Exxon Mobil and TotalFinaElf. There is some integrity to oil managements arguments that they can increase cost-cutting and efficiency by merging. curiously in the area of exploration and work, where in new marches areas such as the former Soviet Union, risks are noble-minded both(prenominal) because of political and economic ciphers, such mergers increase the pool of large(p) functional to one firm to evolve such high risks. spot it is less true in refining and marketing, mergers and union ventures do allow economies of scale, through building new facilities on a larger scale or by shimmy production to one refining facility while shut stack another. However, the essence of such economies of scale is the reduction in the centre of labor needed to produce a given over amount of output. The Chevron Texaco merger might also take over been motivated by managements develop perspectives.

cover management probably saw in this merger the probability to get larger salaries and golden parachutes that would secure some(prenominal) accomplishable future outcome of the merger. According to a drop-off Meyer & adenosine monophosphate; Partners study of the covering 200 U.S. companies, 90 percent of a CE Os pay is tied to performance, and more(pre! nominal) than half of that pay is in stock-option grants. Its no longer unusual for the CEOs equity stake to vertex $100 million, and mergers often involve sizable new grants and disunite up study windfalls. Ego could be a major factor in driving mergers, as executives privation more recognition, more... If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper