Company: OXY-WT
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0000797468-25-000054
Chunk: 48

Company: OCCIDENTAL PETROLEUM CORP /DE/
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 48
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 of the performance period. Thus, the Compensation Committee approved a payout result of approximately 176%. Cash Return on Capital Employed (CROCE) Award . The CROCE award is designed to focus executives on the efficient use of capital by promoting discipline in capital allocation decisions. CROCE is a transparent measure of how efficiently Occidental uses its capital and is calculated from Occidental’s audited financial statements with no adjustments for special items. The Compensation Committee aims to set the CROCE performance targets at a challenging level for each performance period based on our capital program, multi-year business plan and strategy, projections from our strategic planning teams, historical results and third-party forecasts relating to future market conditions. The CROCE award is denominated in PSUs, each of which is equivalent to one share of common stock. The percentage of target PSUs that become payable at the end of the applicable three-year performance period depends on Occidental’s absolute CROCE during the performance period. A table illustrating the potential payout of the 2024 CROCE award based on three-year CROCE performance is set forth below:

| CROCE Performance Targets(1) | % of Target PSUs Earned(2) |
| CROCE of ≥ 22%               | 200%                       |
| CROCE of 20%                 | 100%                       |
| CROCE of 18%                 | 25%                        |
| CROCE < 18%                  | 0%                         |

(1) See page 87 for the formula to calculate CROCE. (2) Payout percentages for CROCE values between 18% and 22% to be determined using linear interpolation between 25% and 200% of target, with a target payout at a CROCE of 20%. Our CROCE performance targets were set at a slightly lower level f or the 2024 CROCE award compared to the 2023 CROCE award to reflect operating and financial plans that incorporated expectations for a less favorable commodity price environment over the three-year performance period of the 2024 CROCE award as compared to the prior performance period; considering these factors, the Compensation Committee believes that the 2024 CROCE award performance targets were set at a rigorous level for value creation and were at least as challenging as those for the 2023 CROCE award . Payout of 2022 CROCE Awards. For the 2022 CROCE award,