Steve Chazen Will Remain as CEO of Occidental Petroleum Through 2014

  Steve Chazen Will Remain as CEO of Occidental Petroleum Through 2014

 Board Adopts Corporate Governance and Executive Compensation Initiatives and
                        Reduces Director Compensation

Business Wire

LOS ANGELES -- April 29, 2013

Occidental Petroleum Corporation (NYSE: OXY) today announced that Steve Chazen
will continue to serve as Chief Executive Officer through the end of 2014 with
the Board’s full support. Mr. Chazen immediately assumes responsibility for
all of the Company’s operations, including Oxy’s international operations. Mr.
Chazen will assist the Board with its ongoing succession process and will work
with the Board on corporate strategy, succession planning, executive
compensation and talent development.

“Today’s announcement is consistent with my personal plans,” stated Steve
Chazen, Chief Executive Officer. “The Board and I have discussed the
importance of identifying new leadership for the next decade. I support the
Board and its efforts to move forward on succession and corporate governance
issues and look forward to working with them to effect an orderly transition.
For the past 20 years, Ray Irani and I have had a productive partnership. Ray
has devoted his career to this company, and during his 20-year tenure as CEO,
total shareholder return increased more than 2,000 percent. As the Board and I
have said many times, Ray has made invaluable contributions to the Company and
has earned our respect and gratitude, as well as the respect and gratitude of
all the stakeholders in the Company. The Board and I look forward to calling
on Ray for advice, counsel and help in advancing the Company’s business
interests for the benefit of our shareholders, employees, and business
partners. We know that he will be forthcoming with all of the wisdom and
judgment he has always given us.”

The Board believes that this action reflects the extensive feedback the
Company has received from shareholders, who also indicated a strong desire to
move forward with other corporate governance and executive compensation
changes. Therefore, the Board is adopting the following policies:

Corporate Governance

  *Going forward it will be the policy of the Board to have an independent
    director serve as Chairman;
  *The chairs of each Board committee and the independent Chairman will be
    rotated at least every five years;
  *The Board will add at least two new independent directors; emphasis will
    be placed on industry knowledge;
  *Going forward, it will be the policy of the Board that former CEOs of the
    Company will not be eligible to serve on the Board of Directors;
  *The mandatory retirement age for the Chief Executive Officer will be fixed
    at 68 years of age;
  *The Board will create a Committee on Management Succession and Talent
    Development. The Board is committed to CEO and executive succession and
  *The independent directors will continue to hold at least one executive
    session without management present during each Board meeting.

Director & Executive Compensation

  *The annual common stock grant to non-employee directors will immediately
    be reduced by at least 20 percent, and the director compensation program
    will be reviewed and revised this year to bring director compensation
    levels in line with peers;
  *The discretionary portion of the CEO bonus will be reduced to no more than
    20 percent from 40 percent, and in evaluating the CEO’s performance,
    emphasis will be placed on the Company’s financial performance as well as
    succession planning, talent development and maintaining and improving the
    Company's achievements on health, safety and environmental matters;
  *The Total Shareholder Return (“TSR”) Award under the Company’s Long Term
    Incentive Program will be limited to 50 percent of the maximum target if
    TSR is negative over the performance period;
  *Future recruitment incentives/bonuses for senior executive officers
    designed to provide recruits with benefits similar to what they would
    forgo in order to accept a position with the Company will be paid
    primarily in equity with retention periods; and
  *The design of the entire Long Term Incentive Program will be reviewed and
    modified to fully align pay and performance, to align the Program with
    those of top-performing Company peers and to reflect best practices. In
    this regard, Mr. Chazen proposed that he will not be eligible for any
    bonus or current earnings-based compensation during his remaining tenure
    as CEO of Occidental. He also proposed that he will not receive any grants
    under the existing TSR-based program. This will allow the Board an
    opportunity to thoughtfully formulate a new compensation plan for the CEO

Director Peggy Foran said, “We greatly value constructive input from our
shareholders and have spoken with many of them over the past several weeks.
After carefully evaluating all of the suggestions and feedback we received
from shareholders during the course of those conversations, we have decided to
adopt these policies, which are aimed at building long-term value for

Spencer Abraham, Chairman of the Compensation Committee, added, “Occidental is
committed to revising its executive compensation program to reflect
shareholder feedback, as well as to insure that our compensation program is in
alignment with our peers and creates a very strong linkage between pay and

                                  About Oxy

Occidental Petroleum Corporation (OXY) is an international oil and gas
exploration and production company with operations in the United States,
Middle East/North Africa and Latin America regions. Oxy is one of the largest
U.S. oil and gas companies, based on equity market capitalization. Oxy's
wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products
and vinyls. Oxy is committed to safeguarding the environment, protecting the
safety and health of employees and neighboring communities and upholding high
standards of social responsibility in all of the company's worldwide


Occidental Petroleum Corporation
Dale A. Petroskey
Melissa E. Schoeb
Chris Stavros
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