Occidental Petroleum Corp. reached a $26-million (U.S.) settlement with its former chairman, Ray Irani, adding to the executive’s billion-dollar haul over more than two decades.
Following Irani’s ouster as chairman by shareholders in May, Occidental said on Monday he would get $14-million, but not a $16.8-million termination payment he had claimed. Irani will also receive certain other benefits as well as payments and equity-based awards due to all departing executives, adding up to a total of $26-million, Oxy said.
In addition, Irani, 78, will receive $1.3-million worth of annual personal benefits for life, including security service and financial planning. At the annual meeting in May, shareholder John Chevedden had highlighted the $390,000 cost of Irani’s financial planning in 2012.
Steve Chazen, Oxy’s chief executive since mid-2011, has said that the company was “nearly insolvent” when Irani took over as CEO in 1990. Now, with a market value around $75-billion, it ranks fourth among U.S. oil companies.
Yet Irani’s pay packages have still raised eyebrows. Since the Wall Street Journal tallied his compensation over the decade to 2009 at $857-million – putting him at third place among U.S. CEOs – he went on to collect another $172-million over the past three years, according to regulatory filings.