First of all, Occidental Petroleum Corporation ( Oxy ) is an international oil and gas geographic expedition and production company, and its OxyChem subordinate is a major North American chemical maker. Second, Oxy are the fourth-largest U.S. oil and gas company, based on market capitalisation of $ 66 billion at year-end 2009, with about 30,000 employees and contractors on four continents.
Following, Oxy besides committed to esteeming the environment, keeping safety and upholding high criterions of societal duty throughout the company ‘s world-wide operations. Furthermore, Oxy ‘s success is built on proficient expertness, concern acumen, strong partnerships and proved ability to present superior consequences.
3.1.1 Merchandise of Oxy
Occidental Oil and Gas
Oxy engages in oil and natural gas geographic expedition and production in three nucleus parts: the United States, Middle East/North Africa and Latin America. Oxy is a world-wide leader in using advanced engineering to hike production from mature oil and natural gas Fieldss and entree hard-to-reach militias. Besides, Oxy has systematically replaced and expanded militias through improved recovery, strategic acquisitions and focussed geographic expedition.
Midstream, Selling and Other
Following, Oxy ‘s Midstream, Marketing and Other section gathers, dainties, procedures, conveyances, shops, purchases and markets crude oil ( including NGLs and condensate ) , natural gas, C dioxide ( CO2 ) and power. Oxy besides trades around its assets, including grapevine and storage capacity, and trades trade goods and securities.
OxyChem is a taking North American maker of polyvinyl chloride ( PVC ) resins, chlorineA and acerb sodaA -A key edifice blocks for a assortment of indispensable merchandises such as plastics, pharmaceuticals and H2O intervention chemicals. For every merchandise it makes, OxyChem ‘s market place is No. 1 or No. 2 in the U.S. and No. 1, 2 or 3 in the universe. OxyChem is the largest U.S. merchandiser seller of acerb sodium carbonate and the universe ‘s largest manufacturer of acerb potassium hydroxide and Ca chloride. Headquartered in Dallas, Texas, the company has fabrication installations 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 twelvemonth 2008 and 2009 and the public presentation of Oxy in twelvemonth 2009
The Chief Executive for Occidental Petroleum Corporation ( Oxy ) is Mr Ray R. Irani. The compensation bundle for the main executive include salary, fillip, fringe benefits, and stock.
In twelvemonth 2008, the wage is $ 1,300,000, nevertheless it was death in twelvemonth 2009 which is $ 1,170,000. While the fillip in twelvemonth 2008 is $ 3,630,000 and it addition in twelvemonth 2009 which is $ 3,752,550. Following, the fringe benefits receive by Mr Ray R.Irani is lessening from twelvemonth 2008 to 2009 with $ 1,849,627 to $ 1,719,979. Last, the stock receive by him is addition if comparison with twelvemonth 2008 and twelvemonth 2009, which is $ 15,747,997 in twelvemonth 2008 and $ 24,758,827 in twelvemonth 2009. The entire alteration in compensation is 39 % from twelvemonth 2008 to twelvemonth 2009.
The entire return for the company in twelvemonth 2009 is 38 % and its gross is $ 15,531 ( mil ) .
3.2.2 Implementation of executive compensation in Oxy
18.104.22.168 Compensation Committee in Oxy
In Oxy, they have their owned Human Resource Committee ( Compensation Committee ) of the Board of managers and executive compensation. The compensation commission have the composing, duties, powers, responsibilities and authorization specified in the Charter.
There are several intent for the compensation Committee in Oxy.
First, the compensation commission need to reexamine and O.K. corporate ends and aims relevant to the Corporation ‘s Chairman and Chief Executive Officer ‘s compensation. Besides, the compensation commission have to measure in audience with the Lead Independent Director the CEO ‘s public presentation in visible radiation of those ends and aims, and determine and O.K. the CEO ‘s compensation degree based on this rating.
Second, the compensation commission has to do recommendations to the Board with regard to incentive-compensation programs and equity-based programs for executive compensation.
Bisides, they besides produce a compensation commission study on executive compensation as required by the Securities and Exchange Commission ( SEC ) to be included in the Corporation ‘s one-year placeholder statement or one-year study on Form 10-K filed with the SEC ;
Following, they besides had to administrate the stock-based compensation programs 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 program adopted by the Board from clip to clip ( jointly, the “ Plans ” )
Duties and Responsibility of the Compensation Committee
There are several Compensation Committee responsibilities which include set one-year and long-run public presentation ends for the CEO and measure, in audience with the Lead Independent Director, the CEO ‘s public presentation against those ends and the public presentation of the Corporation ‘s equal companies, and determine and O.K. the CEO ‘s compensation based on this rating. Besides they besides had to reexamine and O.K. the one-year wages, fillips and other executive benefits of all other executive officers of the Corporation.
Following, they besides need to administrate the stock-based compensation programs 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 program adopted by the Board from clip to clip Periodically reexamine the public presentation of the Plans and their regulations and do any necessary alterations to guarantee that the intents of the Plans are met.
Furthermore, they must reexamine new executive compensation plans on a periodic footing the operation of the Corporation ‘s executive compensation plans to find whether they are decently coordinated and moderately associate to executive public presentation, and sporadically reexamine policies for the disposal of executive compensation, including direction fringe benefits.
With the Compensation Committee, the corporation can hold a well pattern on executive compensation… .
22.214.171.124 Stockholders in Oxy to hold input on executive compensation
On January 2009, Oxy has under fire for the oversize wage of its main executive, Ray R. Irani, has agreed to give stockholders a limited voice in make up one’s minding how much the Los Angeles oil company pays its top executives.
The “ say-on-pay ” policy will give stockholders a nonbinding consultative ballot on executive compensation determinations made by the company ‘s board of managers. Besides the new policy will travel into consequence at the company ‘s 2010 one-year meeting excessively.
After the board approved the policy, a group of corporate militants agreed to drop a say-on-pay proposal they planned to show at this twelvemonth ‘s one-year meeting. Similar proposals received important support at Occidental ‘s 2007 and 2008 meetings but failed to go through.
The Chief Executive Ray R Irani has been a mark of critics who contend that stockholders should hold more power to harness in what some say is inordinate wage.