First of all, Occidental Petroleum Corporation (Oxy) is an international oil and gas exploration and production company, and its OxyChem subsidiary is a major North American chemical manufacturer. Second, Oxy are the fourth-largest U.S. oil and gas company, based on market capitalization of $66 billion at year-end 2009, with nearly 30,000 employees and contractors on four continents.
Next, Oxy also committed to respecting the environment, maintaining safety and upholding high standards of social responsibility throughout the company's worldwide operations. Furthermore, Oxy's success is built on technical expertise, business acumen, strong partnerships and proven ability to deliver superior results.
3.1.1 Product of Oxy
Occidental Oil and Gas
Oxy engages in oil and natural gas exploration and production in three core regions: the United States, Middle East/North Africa and Latin America. Oxy is a worldwide leader in applying advanced technology to boost production from mature oil and natural gas fields and access hard-to-reach reserves. Besides, Oxy has consistently replaced and expanded reserves through improved recovery, strategic acquisitions and focused exploration.
Midstream, Marketing and Other
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Next, Oxy's Midstream, Marketing and Other segment gathers, treats, processes, transports, stores, purchases and markets crude oil (including NGLs and condensate), natural gas, carbon dioxide (CO2) and power. Oxy also trades around its assets, including pipeline and storage capacity, and trades commodities and securities.
OxyChem is a leading North American manufacturer of polyvinyl chloride (PVC) resins, chlorineÂ and caustic sodaÂ -Â key building blocks for a variety of indispensable products such as plastics, pharmaceuticals and water treatment chemicals. For every product it makes, OxyChem's market position is No. 1 or No. 2 in the U.S. and No. 1, 2 or 3 in the world. OxyChem is the largest U.S. merchant marketer of caustic soda and the world's largest producer of caustic potash and calcium chloride. Headquartered in Dallas, Texas, the company has manufacturing facilities in the United States, Canada and Latin America.
3.2 Human Resource Practices in Occidental Petroleum Corporation
3.2.1 Comparison of compensation to Oxy Chief Executive between year 2008 and 2009 and the performance of Oxy in year 2009
The Chief Executive for Occidental Petroleum Corporation(Oxy) is Mr Ray R. Irani. The compensation package for the chief executive include salary, bonus, perks, and stock.
In year 2008, the salary is $ 1,300,000, however it was decease in year 2009 which is $1,170,000. While the bonus in year 2008 is $ 3,630,000 and it increase in year 2009 which is $ 3,752,550. Next, the perks receive by Mr Ray R.Irani is decrease from year 2008 to 2009 with $1,849,627 to $ 1,719,979. Lastly, the stock receive by him is increase if compare with year 2008 and year 2009, which is $15,747,997 in year 2008 and $24,758,827 in year 2009. The total change in compensation is 39% from year 2008 to year 2009.
The total return for the company in year 2009 is 38% and its revenue is $15,531(mil).
3.2.2 Implementation of executive compensation in Oxy
184.108.40.206 Compensation Committee in Oxy
In Oxy, they have their owned Human Resource Committee( Compensation Committee) of the Board of directors and executive compensation. The compensation committee have the composition, responsibilities, powers, duties and authority specified in the Charter.
There are several purpose for the compensation Committee in Oxy.
Firstly, the compensation committee need to review and approve corporate goals and objectives relevant to the Corporation's Chairman and Chief Executive Officer's compensation. Besides, the compensation committee have to evaluate in consultation with the Lead Independent Director the CEO's performance in light of those goals and objectives, and determine and approve the CEO's compensation level based on this evaluation.
Secondly,the compensation committee has to make recommendations to the Board with respect to incentive-compensation plans and equity-based plans for executive compensation.
Bisides, they also produce a compensation committee report on executive compensation as required by the Securities and Exchange Commission(SEC) to be included in the Corporation's annual proxy statement or annual report on Form 10-K filed with the SEC;
Next, they also had to administer the stock-based compensation plans of the Corporation, including the 1987 Stock Option Plan, the 1995 Incentive Stock Plan, the 1996 Restricted Stock Plan for Non-Employee Directors, the 2001 Incentive Compensation Plan and any other stock-based plan adopted by the Board from time to time (collectively, the "Plans")
Duties and Responsibility of the Compensation Committee
Always on Time
Marked to Standard
There are several Compensation Committee duties which include set annual and long-term performance goals for the CEO and evaluate, in consultation with the Lead Independent Director, the CEO's performance against those goals and the performance of the Corporation's peer companies, and determine and approve the CEO's compensation based on this evaluation. Besides they also had to review and approve the annual salaries, bonuses and other executive benefits of all other executive officers of the Corporation.
Next, they also need to administer the stock-based compensation plans of the Corporation, including the 1987 Stock Option Plan, the 1995 Incentive Stock Plan, the 1996 Restricted Stock Plan for Non-Employee Directors, the 2001 Incentive Compensation Plan and any other stock-based plan adopted by the Board from time to time Periodically review the performance of the Plans and their rules and make any necessary revisions to assure that the purposes of the Plans are met.
Furthermore, they must review new executive compensation programs on a periodic basis the operation of the Corporation's executive compensation programs to determine whether they are properly coordinated and reasonably relate to executive performance, and periodically review policies for the administration of executive compensation, including management perquisites.
With the Compensation Committee, the corporation can have a well practice on executive compensation....
220.127.116.11 Shareholders in Oxy to have input on executive compensation
On January 2009, Oxy has under fire for the outsized pay of its chief executive, Ray R. Irani, has agreed to give shareholders a limited voice in deciding how much the Los Angeles oil company pays its top executives.
The "say-on-pay" policy will give shareholders a nonbinding advisory vote on executive compensation decisions made by the company's board of directors. Besides the new policy will go into effect at the company's 2010 annual meeting too.
After the board approved the policy, a group of corporate activists agreed to drop a say-on-pay proposal they planned to present at this year's annual meeting. Similar proposals received significant support at Occidental's 2007 and 2008 meetings but failed to pass.
The Chief Executive Ray R Irani has been a target of critics who contend that shareholders should have more power to rein in what some say is excessive pay.