Company: OXY-WT
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000797468-25-000029
Chunk: 74

Company: OCCIDENTAL PETROLEUM CORP /DE/
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 74
---
.61 (3,978)$40.37 Forfeitures(25)$57.60 (175)$56.58 Unvested as of December 31398 $50.14 7,119 $57.63 TOTAL SHAREHOLDER RETURN INCENTIVE AWARDSCertain executives are awarded TSRIs that vest at the end of a three-year period following the grant date. Payout is based upon Occidental’s absolute total shareholder return and performance relative to its peers. TSRIs have payouts that range from 0% to 200% of the target award and settle in stock once certified. Dividend equivalents for TSRIs are accumulated and paid upon certification of the award. The fair value of TSRIs settled in shares during the years ended December 31, 2024, 2023, and 2022 was $68 million, $45 million and zero, respectively.The fair values of TSRIs are initially determined on the grant date using a Monte Carlo simulation model based on Occidental’s assumptions, noted in the following table, and the volatility from corresponding peer group companies. The expected life is based on the Term. The risk-free interest rate is the implied yield available on zero coupon Treasury notes at the time of grant with a remaining term equal to the Term. The dividend yield is the expected annual dividend yield over the Term, expressed as a percentage of the stock price on the grant date. Estimates of fair value may not accurately predict the value ultimately realized by the employees who receive the awards, and the ultimate value may not be indicative of the reasonableness of the original estimates of fair value made by Occidental.The grant-date assumptions used in the Monte Carlo simulation models for the estimated payout level of TSRIs were as follows: TSRIs202420232022Assumptions used:Risk-free interest rate4.3%4.6%1.7%Volatility factor45%64%80%Expected life, years2.832.842.89Grant-date fair value of underlying Occidental common stock$61.36$59.71$42.98A summary of changes in Occidental’s unvested TSRIs in 2024 is presented below: TSRIsthousands, except fair valuesAwardsWeighted-Average Grant-Date Fair Value of Occidental StockUnvested as of January 1 1,507 $40.43 Granted439 $61.36 Vested (a)(651)$25.39