What is the main change to the 2009 ROEI awards?

The main change is that the payment for these awards, which was previously 100% in cash, will now be settled 50% in cash and 50% in Occidental Petroleum shares. Additionally, executives receiving these shares must hold them for at least three years after taxes are settled.

What types of new incentive awards were granted?

New incentive awards were granted under the 2005 Long-Term Incentive Plan. These include Total Shareholder Return Incentive (TSRI) awards and Restricted Stock Incentive awards for several key executives.

How will the new TSRI awards be settled?

The new Total Shareholder Return Incentive (TSRI) awards will be settled 100% in shares upon the achievement of the performance goal. This is a change from prior awards which were settled 50% in cash and 50% in shares.

Does this filing indicate a change in the company's financial performance or outlook?

This filing primarily concerns adjustments to executive compensation plans and incentive awards. It does not contain specific financial statements or details about operational performance that would directly indicate a change in the company's financial outlook. The focus is on aligning executive incentives with long-term shareholder value.

OXY/OXY-WT 8-K: Leadership Changes

Summary

Occidental Petroleum Corporation (OXY) filed an 8-K on July 13, 2012, primarily detailing changes to executive compensation arrangements. The Compensation Committee approved amendments to existing Return on Equity Incentive (ROEI) awards granted in 2009 to Dr. Ray R. Irani and Stephen I. Chazen. These awards will now be settled 50% in cash and 50% in shares, a shift from the original 100% cash settlement. Importantly, recipients must retain the share portion of these awards for at least three years after tax settlement, aligning executive interests with long-term shareholder value. Furthermore, the filing announced new incentive award grants under the 2005 Long-Term Incentive Plan for key executives, including Dr. Irani, Mr. Chazen, and others. These grants consist of Total Shareholder Return Incentive (TSRI) awards and Restricted Stock Incentive awards. While the maximum number of performance shares and restricted shares granted differ from previous years, the stated value of these awards is comparable to 2011 grants. A notable change in the TSRI awards is the settlement of performance goals entirely in shares, rather than a 50/50 cash/share split, reinforcing a commitment to equity-based compensation and long-term performance alignment.

Key Highlights

12009 Return on Equity Incentive (ROEI) awards for Dr. Irani and Stephen Chazen amended to be 50% cash and 50% shares, a change from 100% cash.
2Recipients of the amended ROEI awards must retain the share portion for at least three years after tax settlement.
3New incentive awards granted under the 2005 Long-Term Incentive Plan for multiple senior executives.
4Awards include Total Shareholder Return Incentive (TSRI) and Restricted Stock Incentive components.
5TSRI awards will be settled 100% in shares upon achievement of performance goals, a change from a 50/50 cash/share split.
6The value of the new incentive awards is stated to be consistent with awards granted in 2011, based on Occidental's common stock price.
7This filing focuses on executive compensation and does not appear to contain significant operational or financial updates.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Executive Changes (Jul 13, 2012)

Summary

Key Highlights

Frequently Asked Questions