This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shareholders Oust Occidental Chairman

LOS ANGELES -- The chairman of Occidental Petroleum Corp. (OXY), who drew criticism over his compensation as CEO, is out.

Ray R. Irani will step down and be replaced by a former diplomat, Occidental announced Friday after its annual meeting. Shareholders cast their shares against him by more than a 3-to-1 margin.

Irani was chairman and CEO from 1990 to 2011 and became executive chairman in May 2011.

The company said that another director, Aziz Syriani, withdrew before the election at the company's annual meeting.

Occidental said that Edward P. Djerejian, a former U.S. ambassador to Israel and Syria, will replace Irani. Former U.S. Energy Secretary Spencer Abraham will become vice chairman.

Irani, 78, has come under fire by shareholders for his compensation. An analysis by The Associated Press found that in 2010, he was the second-highest-paid CEO among Standard & Poor's 500 companies, with a package of salary, stock awards and other compensation valued at $76.1 million, up 142% from the year before.

Big shareholders including the California State Teachers' Retirement System called his compensation a waste of shareholder money.

The Los Angeles-based oil and gas producer defended the compensation, saying it was tied to Occidental's performance. The company's net income jumped 55% to $4.53 billion in 2010. Under Irani's leadership, Occidental grew to become the fourth-largest U.S.-based oil company. Its stock market value was $9 billion in 2000 and is $73 billion now.

Irani had planned to retire at the end of 2014.

Occidental said Friday that CEO Stephen Chazen and the board would call Irani for what the company termed "advice, counsel, and help in advancing the company's business interests." Chazen thanked Irani for 30 years of service to Occidental.

In February, Occidental announced that it would start looking for a replacement for Chazen. Last month the company said that its independent directors believed that "now is the time to seek new leadership to be in place for the longer term."

Last week Occidental announced that Chazen would remain CEO through next year and help in the search for his successor.

The new chairman, Djerejian, has been on the Oxy board since 1996. He is a founding director of the James A. Baker III Institute for Public Policy at Rice University.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%
YHOO $43.48 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs