Author Topic: OXY - Occidental Petroleum  (Read 16671 times)

RadMan24

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Re: OXY - Occidental Petroleum
« Reply #60 on: April 18, 2020, 10:32:20 AM »
Operationally, OXY has some of the best well results. So nothing wrong with annual bonus and LTI value.

Whether the LTI will pay out at the target level is a different story, based on future performance. So, once again, nothing disgusting about it.

Editing this to include actual information, rather than piece mail drama headlines Gregmal likes to spread around:

COMPENSATION DECISIONS

In the wake of these events and cost-cutting initiatives, the Executive Compensation Committee (the Compensation Committee) remains fully committed to Occidental’s pay-for-performance philosophy. With the unanimous support of the Board, the Compensation Committee approved the following commitments for 2020 executive compensation:

The Compensation Committee will not adjust the long-term incentive awards granted in February 2020. Awards were granted as part of our regular annual award cycle in February 2020, before the fall of crude oil prices, and the Compensation Committee subjected a meaningful portion of the awards to performance conditions intended to be more difficult to achieve than past programs. As a result, the awards have lost significant value in the last month, currently tracking at less than 8% of their original grant date fair values. The Compensation Committee has determined that it will not adjust the number of shares granted or the relevant performance targets as a result of our current macroeconomic climate. As of March 24, 2020:

●   the time-based restricted stock unit (RSU) awards had decreased in value by over 74%, in line with Occidental’s stock price decline;
●   the cash return on capital employed (CROCE) awards were tracking at a 0% payout level, based on current commodity prices and Occidental’s reduced capital budget;
●   the relative total shareholder return (TSR) awards were tracking at a 0% payout level, based on Occidental’s current TSR performance against the performance of the peer group; and
●   the stock option and stock appreciation right awards were significantly underwater.

The Compensation Committee significantly reduced the base salaries of the company’s executive officers. Due to cash conservation priorities, the Compensation Committee retracted planned 2020 salary increases and reduced Ms. Hollub’s base salary by 81%. The base salary of the other named executive officers was reduced by an average of 64%.

The Compensation Committee will continue to preserve strong alignment with shareholders in all aspects of the executive compensation program. As described in the Compensation Discussion and Analysis section of this Proxy Statement, in February 2020, the Compensation Committee awarded over 70% of Ms. Hollub’s earned 2019 annual cash incentive award in shares of forfeitable time-vesting RSUs in lieu of cash so that her ultimate annual incentive pay opportunity remained subject to Occidental’s stock price performance through early 2023. As of March 24, 2020, these RSUs had decreased in value by over 74%. The Compensation Committee will continue to monitor market conditions and Occidental’s performance and may take additional compensation actions as appropriate.

The Board voluntarily reduced its own compensation. The Board meaningfully reduced all components of non-employee director compensation by 15% for the 2020-2021 term. For the 2019-2020 term, all remaining payments were also reduced by 15%.
« Last Edit: April 18, 2020, 10:36:29 AM by RadMan24 »


Gregmal

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Re: OXY - Occidental Petroleum
« Reply #61 on: April 18, 2020, 11:35:09 AM »
Yea, cool. I remember you continually rationalizing things like this at GM as well. Hopefully you dont still own that too.

Gregmal

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Re: OXY - Occidental Petroleum
« Reply #62 on: April 18, 2020, 12:00:58 PM »
Further, if you want to get more into specific issues to take issue with, theres a few.

First, any year in which your stock losses a third of its value or an amount that is negative, let alone double digit negative, nobody should be getting rewarded. This is bullshit and flies in the face of enduring hardship. Rather it rewards folks when the result(even if short term) does not merit it, and allows for a situation where some feast while the majority famine.

Second, in respect to one, this has only been enabled by bullshit firms like Korn Ferry whom are employed by firms like Occidental, to justify executive compensation. Right? Yes, you read that correctly. The firm pays an outside firm to tell them its ok to pay themselves what they want and even come up with presentations and peers groups so this can be rationalized to its shareholders or further pay increases can be implanted later on. Yup, your shareholder resources are being spent to hire consultants to justify paying your executives for -30% during a year the broader market just did +30%...

These firms cook up "relative performance" and "peer groups" as an excuse to squeeze this shit through. NO ONE, misses bonuses during years when the stock is up double digits whether warranted or not. They all always take credit. But when its down, having a peer group gives them fingers to point and say things like "it was tough for everyone" or "we did better than so and so"...its all a scam.

Third, lets not forget the disastrous APC acquisition, which should be a complete bonus torpedo in any world where real performance and decisions where judged fairly. That acquisition, the 106.5% bonus payout acquisition, could prove to be fatal for equity holders. But at least Radman is happy about the well results....those will be a boon for new equity holders I am sure.

πv

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Re: OXY - Occidental Petroleum
« Reply #63 on: June 06, 2020, 11:54:36 AM »
I hope everyone enjoyed yesterday! 8)

Foreign Tuffett

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Re: OXY - Occidental Petroleum
« Reply #64 on: July 31, 2020, 12:04:50 PM »
If this proves to be true, Buffett not bullish on OXY common

https://twitter.com/ChrisBloomstran/status/1289272384050966528
Former Teldar Paper Vice President

πv

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Re: OXY - Occidental Petroleum
« Reply #65 on: August 02, 2020, 10:21:51 AM »
That could be the case, or he found a better deal somewhere else.  After watching this year's annual meeting, I get the feeling that he is getting BRK ready for the transition and may be less aggressive than in previous eras; he certainly talked a lot about insurance obligations and taking care of people.  Per the meeting, OXY common is a bet on long term oil prices.  Given his $10bil illiquid preferred position and the warrants, BRK is spreading the risk and rolling proceeds into things like the Dominion acquisition and BRK share repurchases.

Buffett on Oil and OXY - https://www.youtube.com/watch?v=3MEzRWyuEyQ


OXY did buy some more time by pushing back their debt. 2021 redemptions now at $2.4bi vs $4.4bi a few months ago.


Let's hope they nail this $4.5bi sale to Pertamina.

https://www.reuters.com/article/us-occidental-divestiture/occidental-in-talks-to-sell-4-5-billion-energy-asset-to-indonesias-pertamina-bloomberg-idUSKCN24U1YA


I am also curious to see what comes out of their Wyoming bids.  Multiple bidders and the announcement is due anytime now.

https://governor.wyo.gov/media/news-releases/2020-news-releases/faqs-for-occidental-land-purchase


It is a risky bet, especially with the dilutions, high leverage, and volatility in WTI; if it works out I'll be happy! ;D