What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to announce an amendment to Occidental Petroleum's 2002-5 Performance-Based Stock Agreements, allowing for cash settlement of certain performance awards.

What change does the amendment introduce regarding stock awards?

The amendment permits Occidental Petroleum to settle performance-based stock awards in cash, specifically for payments exceeding 100% of the target performance shares. Previously, these awards were primarily settled in shares.

How will the cash payment amount be determined?

The cash payment amount will be calculated based on the closing price of Occidental Petroleum's common stock on the New York Stock Exchange on the date the attainment of performance goals is certified for the applicable awards.

What is the potential impact of this amendment on investors?

For investors, this amendment signifies increased flexibility in the company's executive compensation structure. It could have implications for future cash flow management and the dilutive effect on shares, depending on how these awards are settled.

OXY/OXY-WT 8-K: Material Agreements

Summary

Occidental Petroleum Corporation (OXY) filed an 8-K on June 8, 2005, primarily to disclose an amendment to its 2002-5 Performance-Based Stock Agreements. This amendment, approved by the Board of Directors' Executive Compensation and Human Resources Committee on June 3, 2005, introduces flexibility in how performance-based stock awards are settled. Specifically, it allows for cash settlement of payments that exceed 100% of the target performance shares, in addition to the existing provision for settlement in shares.

Key Highlights

1Amendment to 2002-5 Performance-Based Stock Agreements approved.
2Allows for cash settlement of performance awards exceeding 100% of target shares.
3Previously, awards allowed for settlement up to 200% of target shares, primarily in stock.
4Cash payments will be based on the closing stock price on the NYSE on the certification date of performance goals.
5This change offers more flexibility in executive compensation, potentially impacting cash flow considerations.
6Effective date of the Board approval was June 3, 2005.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Material Agreement (Jun 8, 2005)

Summary

Key Highlights

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