Summary
Occidental Petroleum Corporation (OXY) announced significant changes to its executive compensation and deferred compensation programs through an 8-K filing dated October 17, 2006. The primary changes involve the discontinuation of new contributions to the 2005 Deferred Stock Program effective January 1, 2007, and the termination of the grandfathered Deferred Stock Program, with distributions to participants expected in November 2006. These actions indicate a strategic shift in how the company structures long-term incentives and executive compensation. Further modifications were made to the company's deferred compensation plans. The grandfathered Deferred Compensation Plan will be split into two new plans, Deferred Compensation Plans 1 and 2. Additionally, the 2005 Deferred Compensation Plan has been amended and will merge with Deferred Compensation Plan 2 to form a Modified Deferred Compensation Plan, also effective January 1, 2007. Investors should note these changes as they could impact executive compensation structures and future equity awards.
Key Highlights
- 1Occidental Petroleum is discontinuing new contributions to its 2005 Deferred Stock Program effective January 1, 2007.
- 2The grandfathered Deferred Stock Program is being terminated, with distributions expected in November 2006.
- 3This move signifies a change in Occidental's executive compensation and equity incentive strategy.
- 4The company is amending its deferred compensation plans, splitting the grandfathered plan into two new plans (Deferred Compensation Plans 1 and 2).
- 5A Modified Deferred Compensation Plan will be formed effective January 1, 2007, through the merger of Deferred Compensation Plan 2 with the amended 2005 Deferred Compensation Plan.
- 6These changes are expected to impact how senior executives and other participants receive and defer compensation.