Anadarko CEO to Get $98 Million Payout in Occidental Deal
June 07 2019 - 4:07PM
Dow Jones News
By Patrick Thomas
Anadarko Petroleum Corp. Chief Executive Al Walker is set to
receive a $98 million payout on completion of the company's $38
billion sale to Occidental Petroleum Corp.
Mr. Walker's payday is part of about $300 million in payouts
that the company's top executives are set to split following the
closing of the deal, Anadarko disclosed Friday in a securities
filing.
In addition to the $98.1 million for Mr. Walker, company
President Robert Gwin will get about $55 million and finance chief
Ben Fink is set to receive $29.4 million, the filing stated.
Daniel Brown, the company's head of U.S. onshore operations, is
set to receive $43.6 million, while, Mitchell Ingram, its head of
international and deepwater operations, is set to receive $43.9
million. Amanda McMillan, the company's general counsel, will get
about $30.6 million.
Much of the money reflects stock options the top executives have
that are set to vest on an accelerated basis. But the payouts also
include "make whole" tax reimbursement payments to offset a
"negative economic impact" that the executives would have otherwise
faced due to the sale, according to the filing.
Occidental agreed to buy Anadarko for $38 billion last month,
after Chevron Corp., which had earlier struck a $33 billion deal to
purchase Anadarko, pulled out of the bidding.
Hefty payouts given to departing executives, also known as
golden parachutes, have been controversial in the past, even
prompting new tax laws meant to restrict the payments.
The Wall Street Journal reported earlier that Anadarko sweetened
the payout its top executives could reap from a deal, a day before
announcing its initial sale to Chevron.
The changes were approved by Anadarko's board on April 11, a day
before the merger announcement, according to a securities filing in
April.
Occidental's deal with Anadarko is expected to close in the
second half of 2019. The deal gives Occidental Anadarko's coveted
assets the Permian Basin of West Texas and New Mexico.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
June 07, 2019 15:52 ET (19:52 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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