COST RESTRUCTURING: CHALLENGE OF THE 1990S

Jeffrey A. Schmidt Towers Perrin Chicago The mid- to late-1980s constituted a period of growth in total shareholder return for the major integrated oil and gas companies. The 5 year rolling average return for the median company among the 17 largest oil and gas concerns rose from roughly 2.5% in 1985 to more than 20% by 1989. This growth reflected the robust economic conditions of the refining and marketing and petrochemicals sectors as well as the cost and balance sheet restructurings that