Occidental Petroleum chief earns $76.1M in 2010

AP News
Posted: Mar 24, 2011 4:45 PM
Occidental Petroleum chief earns $76.1M in 2010

Occidental Petroleum Corp.'s CEO, who has rankled some shareholders with his large pay packages, doubled his compensation last year, according to an Associated Press calculation of figures disclosed Thursday in a regulatory filing.

Chairman and CEO Ray Irani, who was America's sixth-highest paid CEO last year, received $76.1 million in 2010. The bulk of his compensation came from stock and performance-based awards that were granted in 2007 and paid in 2010. Irani received a total of $40.3 million in stock awards and $31.6 million from a performance-based cash bonus.

Occidental also paid Irani a salary of $1.19 million and a bonus of $1.4 million. In addition, he received perks worth $1.7 million, which include contributions to the company's savings and retirement plans.

The Los Angeles oil and gas producer said it ties executive compensation to company performance. Occidental's net income jumped 55 percent last year to $4.53 billion. The company also increased oil and gas production by 5 percent to a company record of 753,000 barrels per day in 2010. It boosted shareholder dividends by 15 percent.

Under Irani's leadership, Occidental has become the fourth-largest U.S.-based oil company with a market value that's ballooned from $9 billion in 2000 to $80 billion in 2010.

Some shareholders have criticized Irani's hefty compensation. The California State Teachers' Retirement System (CalSTRS) and Relational Investors LLC _ which together own 1.24 percent of Occidental's outstanding shares _ complained last May that Irani's pay "wastes shareholder money and creates enormous pay disparities."

Irani responded in October, announcing that he would take a pay cut and retire at the end of 2014.

The AP aims to isolate the value that company boards place on CEOs' total compensation packages. It includes salary, bonus, incentives, perks and the estimated value of stock options and awards.

Occidental Petroleum shares fell 14 cents to $99.91 in afternoon trading.