It also said Tuesday that directors approved a $100,000 raise for Watson, boosting his annual salary to $1.8 million.
Four other executives will get bonuses of up to $2.2 million and raises. The San Ramon, Calif., company says it will detail its executive compensation packages when it files a proxy statement with the Securities and Exchange Commission.
Chevron earned $26.2 billion in 2012, the second-largest profit in company history. Its stock rose 2 percent in 2012 and is up 10 percent in 2013.