Summary
Occidental Petroleum Corporation (OXY) filed an 8-K on July 22, 2008, to report on compensatory arrangements for its executive officers. On July 16, 2008, the company's Executive Compensation and Human Resources Committee approved grants of incentive awards under the 2005 Long-Term Incentive Plan. These awards are designed to incentivize performance based on Return on Equity (ROE) and Total Shareholder Return (TSR).
Key Highlights
- 1Executive officers, including Dr. Irani and Messrs. Chazen, Morgan, Olson, and de Brier, received incentive awards.
- 2Awards are tied to two key performance metrics: Return on Equity (ROE) and Total Shareholder Return (TSR).
- 3Specific target incentive amounts (in dollars) and target performance share amounts (in shares) were granted to named executives.
- 4The forms of the award agreements are substantially similar to the prior year.
- 5New additions to the award agreements include 'Attachment 1 – General Terms of Employment' and 'Attachment 2 – Arbitration Provisions'.
- 6The filing includes Exhibits 10.1 and 10.2 detailing the ROE (cash-based) and TSR (equity and cash-settled) incentive award agreements, respectively.
Frequently Asked Questions
This 8-K filing primarily serves to disclose the compensation awarded to Occidental Petroleum's executive officers through incentive programs tied to the company's financial performance, specifically Return on Equity and Total Shareholder Return.
The incentive awards were granted to specific executive officers, including Dr. Irani and Messrs. Chazen, Morgan, Olson, and de Brier, as well as other employees of the company.
The incentive awards are linked to two critical performance indicators: Return on Equity (ROE), which is a cash-based award, and Total Shareholder Return (TSR), which is an equity and cash-settled award.
While the core award agreements remain substantially the same, two new attachments have been added: 'Attachment 1 – General Terms of Employment' and 'Attachment 2 – Arbitration Provisions'.