Occidental Petroleum (NYSE:OXY)
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2 Months : From May 2019 to Jul 2019
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)
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