Occidental (Oil) CEO got more than $400 million in 2006

[UpInArms]

Source: Reuters

CHICAGO (Reuters) - Occidental Petroleum Corp.'s chairman and chief executive took in more than $400 million in compensation last year, the company said in a filing, one of the biggest single-year payouts in U.S. corporate history.

The largest part of Ray Irani's 2006 payout was $270.2 million from the exercise of options awarded from 1997 to 2006, representing more than 7.1 million shares, according to the company's annual proxy statement, which was filed with the Securities and Exchange Commission in March.

Irani also received $93.3 million in stock and dividends from a deferred stock program when the company closed the plan in October due to increases in liability and expenses for the program, the company said.

Irani's salary in 2006 was $1.3 million and his cash bonus was $1.4 million, according to the filing. But stock and option awards and other benefits lifted his 2006 compensation to $55.6 million, the proxy said.

Read more: http://www.reuters.com/article/topNews/idUSN0728140620070408

[90-percent]

1. hmmmm

That dude been pullin' some major overtime!

-85% Jimmy

[ohio2007]

4. He'll need to burn the "midnight oil" if he wants to outbid a China deal in Iraq

And Iraq's big oil contracts go to ...
Companies from China, India and other Asian nations are seen getting the first contracts. But don't write off Big Oil just yet.
By Steve Hargreaves, CNNMoney.com staff writer
April 5 2007: 1:42 PM EDT


NEW YORK (CNNMoney.com) -- Despite claims by some critics that the Bush administration invaded Iraq to take control of its oil, the first contracts with major oil firms from Iraq's new government are likely to go not to U.S. companies, but rather to companies from China, India, Vietnam, and Indonesia.


<snip>
http://money.cnn.com/2007/04/05/news/international/iraq_oil/index.htm

Is Big Oil going to let the Asian world get those contracts without a fight ?

[youngdem]

2. Misleading article

Not to say he didn't make an excessive amount of money, but the $400M number is bullshit.

The number included $270.2 M in stock awarded over a ten year period. So, that's REALLY $27.2 M a year in bonuses, plus his base salary.

Then, $93.3 M came from a deferred stock program from who knows how many years.

So, $270.2 M plus $93.3 M equals $363.5M.

His actual salary was $27.2 m + pro rata share of the $93.3m *(discontinued annuity) + $2.7 m in cash and bonuses + $55.6 M i other benefits = $94.8 m (assuming a ten year life of the discontinued annuity)


NOT saying this is just compensation, but the article is 300% incorrect in its calculations, and that error forms the whole basis of the article - namely that this is one of the highest paydays in US history.

IT ISN'T. NOT by a LONG SHOT. There were years when Microsoft was growing very rapidly where numerous insiders were awarded BILLIONS EACH in stock in a given year. Bill Gates and Paul Allen certainly had years when their wealth increased by tens of billions due to stock awards and value increases.

This is a really stupid article. Yeah, so what, the guy is overpaid. Take it up with the Board of Directors at your next shareholder meeting, and nominate fewer crooks to the board so less of this shit happens and more goes in the shareholders' pockets.

[UpInArms]

3. the article did not say it was all earned in 2006 - it stated it was paid out in 2006

and that it was one of the largest "pay-outs" - so your "debunking" was unnecessary.

:toast:

[youngdem]

5. Not true.

Even based on a single year pay out, it wasn't even CLOSE to one of the largest. Dan Snyder, Bill Gates, George Soros, Armand Hammer and many others earned MUCH, MUCH more (BILLIONS) in single years than this. Based on a single pay out year by a CEO, this wouldn't crack the top ten.

[Trillo]

9. The article doesn't say it cracks "the top ten"

It appears that this article's CEO is certainly one of the top 1%, and possibly the top 400 of about 174M.

[yurbud]

14. that deferred compensation continues even if he is fired.

[yurbud]

15. when do CEOs cross the line from effective managers and leaders to idle rich parasites?

There must be some who actually earn their pay not just in terms of manipulating the stock price but improving what the company itself actually does.

As irritating a person as Steve Jobs is, he is like that. He knows his product.

Most CEOs seem to only dimly aware of whether their companies sell anvils or dried weasel anuses.

[Gatchaman]

6. But the reason gas is so expensive

is because hippies won't let oil companies build refineries.

yeah, right.

[democraticrevolution]

7. Interestingly enough

I went to the NY Auto Show yesterday to check out the alternative energy and hybrid cars. BMW has a Hydrogen 7 concept car and both Honda and Toyota have hybrids as major components to their new lines. Lexus the luxury brand which Toyota makes also has a new hybrid. The American car makers are rather shameful in this regard.

http://www.jasongooljar.com/?p=940

[Orrin_73]

8. Isn´t this the company that was responsible for the piper alpha

disaster in the north sea?
Piper Alpha disaster

[mrdmk]

12. Yes, in 1988 Occidental Petroleum was the first oil company to make

deep water drilling reality with piper alpha drilling platform. This platform starting drilling in 1976.

<from the above link>
There is controversy about whether there was sufficient time for more effective emergency evacuation. People were still getting off the platform several hours after the initial fires and explosions. The proximal problem was that most of the personnel who had the authority to order evacuation had been killed when the first explosion destroyed the control room. This was a consequence of design of the platform, including the absence of blast walls. Another contributing factor was that a nearby platform (the Tartan) continued to pump gas into the heart of the fire until its pipeline ruptured in the heat. The operations crew on the Tartan did not have authority to shut off production even though they could see that Piper Alpha was burning.

The nearby support vessel Lowland Cavalier reported the initial explosion just before 22:00, and the second explosion occurred just twenty two minutes later. By the time civil and military rescue helicopters reached the scene, flames over one hundred metres in height and visible as far as one hundred km (120 km from the Maersk Highlander) away prevented safe approach. Tharos, a specialist firefighting vessel, was able to approach the platform, but could not prevent its destruction.

Two crewmen from the Lowland Cavalier were killed when an explosion on the platform destroyed their "Fast Rescue Craft", which had recovered several survivors from the water. Tharos could not pump sufficient water to approach the burning platform until after the rupture of the Tartan pipeline, about two hours after the start of the disaster. Only once Tartan stopped pumping gas into the fire could Tharos come alongside. Tharos recovered no one that night.

The fire was eventually put out by a team led by famed firefighter Red Adair in which he claims he had to battle 80 mph winds and 70-foot waves.
<end of snip>


Before fire


After fire


I was actually worked Occidental Petroleum at the time. It was a very sad feeling that day.

[wordpix]

10. and the head of Ford Motor Co. got $28 million in his 1st 4 mos. as Ford went bankrupt

:grr:

[Rosa Luxemburg]

11. where is he investing?

[1932]

13. It might be time to nationalize this industry.