Unocal Chief Executive’s Pay Rose 7.1%

Unocal Corp. paid Chief Executive Roger Beach about $1.4 million last year, up 7.1% from 1997, before the effect of a new options program. Beach received $848,339 in salary, a cash bonus of $237,450, restricted stock worth $263,513 and other income totaling $65,182, according to the oil company’s annual proxy filing with the Securities and Exchange Commission. Although other oil companies cut executive compensation to weather declining oil prices, El Segundo-based Unocal said it increased pay for its top executives in part because of a new option program. Unocal changed its stock-option program last year to offer executives increased rewards if the company’s stock does well and higher risks if it doesn’t. Beach was granted 750,000 options at an exercise price of slightly more than $51, much higher than Unocal’s current price. Unocal’s stock closed at $36.50 on the NYSE, down 56 cents. Those options can’t be exercised unless Unocal stock rises above $51 for 10 out of 20 consecutive days before March 30, 2001, or unless Unocal stock outperforms three-quarters of the oil industry during the three-year period.