Summary
This 8-K filing from Occidental Petroleum (OXY) on July 16, 2013, primarily concerns the executive compensation of its CEO, Stephen Chazen. The Executive Compensation Committee approved a Restricted Stock Incentive Award of 56,004 shares to Mr. Chazen, valued at $5 million. This award maintains the same dollar value as his 2012 award, with the specific share count adjusted for stock price differences. Significantly, Mr. Chazen will not be eligible for annual bonuses, current earnings-based compensation, or Total Shareholder Return Incentive Awards for 2013. His compensation will consist of his annual salary, other annual compensation, and this restricted stock award. The terms of the award are largely consistent with the prior year, with an increased Net Income performance goal and modified vesting provisions related to retirement and change-in-control events. The company is also reviewing and modifying its executive long-term incentive program for other named officers to better align pay with performance and peer practices.
Key Highlights
- 1CEO Stephen Chazen received a $5 million Restricted Stock Incentive Award, valued at 56,004 shares.
- 2The dollar value of the CEO's restricted stock award remains consistent with the 2012 award.
- 3Mr. Chazen will not receive annual bonuses, current earnings-based compensation, or a Total Shareholder Return Incentive Award for 2013.
- 4The Net Income performance goal for the restricted stock award has been increased.
- 5Vesting provisions have been modified for retirement with company consent and change-in-control scenarios.
- 6Occidental Petroleum is undertaking a review and modification of its executive long-term incentive program for other officers to enhance pay-for-performance alignment.