UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
1. Name and Address of Reporting Person
Greehey, William E.
One Valero Place
San Antonio, TX 78212
USA
2. Issuer Name and Ticker or Trading Symbol
Valero Energy Corporation
VLO
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
01/22/03
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
(X) Director ( ) 10% Owner (X) Officer (give title below) ( ) Other
(specify below)
Chairman of the Board, President and Chief Executive Officer
7. Individual or Joint/Group Filing (Check Applicable Line)
(X) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person
___________________________________________________________________________________________________________________________________
Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
| Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership |
| | | | Beneficially |(D)or | |
| | | | | A/| | Owned at |Indir | |
| Date |Code|V| Amount | D | Price | End of Month |ect(I)| |
___________________________________________________________________________________________________________________________________|
Common Stock, $.01 par valu|01/23/|A | |13,864* |A | | | | |
e (bonus shares) |03 | | | | | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
Common Stock, $.01 par valu|01/22/|M | |36,249* |A | | | | |
e (settlement of '00 perfor|03 | | | | | | | | |
mance shares) | | | | | | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
Common Stock, $.01 par valu|01/22/|M | |37,500* |A | | | | |
e (settlement of '01 perfor|03 | | | | | | | | |
mance shares) | | | | | | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
Common Stock, $.01 par valu|01/22/|M | |38,501* |A | |1,256,959 |D | |
e (settlement of '02 perfor|03 | | | | | | | | |
mance shares) | | | | | | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
| | | | | | |67,754.0455 |I |plans |
-----------------------------------------------------------------------------------------------------------------------------------|
* See footnote (2) on Tabl| | | | | | | | | |
e II. | | | | | | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
___________________________________________________________________________________________________________________________________
Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1.Title of Derivative |2.Con- |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction | rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer | | | rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|Price of| | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva- | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu- | | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity |Date |Code|V| Amount | |ble | | | |Month |(I)| |
___________________________________________________________________________________________________________________________________|
Performance Shares (aw|(1) |01/22|A | |100,000 |A |(1) |01/20|Common Stock|(1) | |100,000 |D | |
ard) | |/03 | | | | | |06 | | | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
Performance Shares (se|(2) |01/22|M | |24,166 |D |01/22|01/20|Common Stock|36,249 | |0 |D | |
ttlement of '00 award)| |/03 | | | | |/03 |03 | |(2) | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
Performance Shares (se|(2) |01/22|M | |25,000 |D |01/22|01/20|Common Stock|37,500 | |25,000 |D | |
ttlement of '01 award)| |/03 | | | | |/03 |04 | |(2) | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
Performance Shares (se|(2) |01/22|M | |25,667 |D |01/22|01/20|Common Stock|38,501 | |51,333 |D | |
ttlement of '02 award)| |/03 | | | | |/03 |05 | |(2) | | | | |
-----------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | | | | | | |
___________________________________________________________________________________________________________________________________|
Explanation of Responses:
(1) Award of performance shares under the Valero Energy Corporation 2001
Executive Stock Incentive Plan.
Pursuant to terms of the reporting person's performance share agreement
approved by the Compensation
Committee, any shares of common stock earned pursuant to the terms of the
performance award are not to be
issued until the first day of January of the year following the reporting
person's termination of service. The
amount of common stock to be awarded to the reporting person is determined
annually over a three-year period
and is payable in amounts ranging from zero to 200 percent of the performance
shares.
(2) The reporting person's receipt of bonus shares and the settlement of his
prior performance share awards
have been deferred until the first day of January of the year following the
reporting person's termination of
service. The Compensation Committee of the Valero Energy Corporation Board of
Directors has determined the
amount of the award at 150% of the number of performance shares eligible to be
issued in 2003 and has accrued
such number of shares of common stock to be issued upon the first day of
January of the year following the
reporting person's termination of
service.
SIGNATURE OF REPORTING PERSON
J. Stephen Gilbert, Attorney-in-Fact for William E. Greehey
DATE
01/24/03