Summary
Occidental Petroleum Corporation (OXY) reported on December 23, 2013, the finalization of a settlement agreement with former Chairman and CEO, Ray Irani, regarding his separation from the company. The settlement resolves all disputes arising from his departure following the 2013 Annual Stockholders Meeting, where he was not re-elected to the Board. The key terms of the settlement include a payment of $14 million to Dr. Irani, significantly less than the $16.8 million he claimed. He will also receive continued lifetime benefits for tax preparation, financial planning, and security services, with an estimated annual cost of up to $1.3 million, but not the more extensive list of lifetime perquisites he had sought. Dr. Irani will not receive an individual performance bonus for 2013. The total estimated pre-tax cost of the settlement, including these ongoing benefits and other post-employment arrangements, is approximately $26 million, plus the annual costs.
Key Highlights
- 1Settlement reached with former Chairman and CEO, Ray Irani, resolving all separation disputes.
- 2Dr. Irani to receive $14 million in settlement, less than his claimed $16.8 million termination payment.
- 3Continuation of tax preparation, financial planning, and security services for life, with estimated annual cost of up to $1.3 million.
- 4Dr. Irani will not receive an individual performance bonus for 2013.
- 5Total estimated pre-tax cost of the settlement and related benefits is approximately $26 million, plus ongoing annual costs.
- 6The settlement includes a mutual release of claims and a non-disparagement agreement.