Company: OXY-WT
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0000797468-25-000054
Chunk: 83

Company: OCCIDENTAL PETROLEUM CORP /DE/
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 83
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 LTIP became effective on May 1, 2015 following shareholder approval at our 2015 Annual Meeting of Shareholders and was most recently amended and restated effective as of May 29, 2020 following shareholder approval at our 2020 Annual Meeting of Shareholders. On February 12, 2025, the Board adopted the Amended LTIP subject to shareholder approval. The Amended LTIP would increase the number of shares of Occidental’s common stock that may be issued under the LTIP by 55,000,000 shares, extend the term for an additional ten years, and make administrative and technical updates. Share Reserve Under the Amended LTIP The Amended LTIP would add 55,000,000 shares to the reserve available for future grants. This increased share reserve would allow Occidental to continue to grant a variety of equity-based compensation alternatives in structuring compensation arrangements for our key employees, officers, directors, consultants and other service providers. Failure of our shareholders to approve the Amended LTIP would mean that we would have fewer shares that we can grant through long-term incentive awards to our personnel. Under the existing share reserve, as of March 1, 2025, there were approximately 13,022,788 shares subject to outstanding equity awards under the LTIP assuming target performance for performance awards (14,959,244 shares would be subject to outstanding equity awards if performance awards were included based on maximum performance), and approximately 13,138,191 shares available for future grants under the LTIP assuming maximum performance for performance awards. Under the LTIP, full-value awards count against the share reserve using a 3:1 ratio. As a result of such ratio, only 4,379,397 full-value awards could currently be granted under the LTIP. Dilution. The table below sets forth our potential dilution (or overhang) levels based on our shares outstanding and the new authorization of 55,000,000 shares to be available for future grants under the Amended LTIP. While we recognize the significant motivational and performance benefits that may be achieved from granting equity awards, we are also mindful of the potential dilutive effect of such awards and our responsibility to our shareholders. The Board believes that the shares requested for purposes of the Amended LTIP represent a reasonable amount of potential equity dilution that would allow us to continue granting equity awards, which is an important component of our overall compensation program. The share information listed in the table below is as of March 1,