Key Insights

• Occidental Petroleum will host its Annual General Meeting on 2nd of May

• CEO Vicki Hollub's total compensation includes salary of US$1.47m

• The overall pay is comparable to the industry average

• Occidental Petroleum's total shareholder return over the past three years was 168% while its EPS grew by 85% over the past three years

The performance at Occidental Petroleum Corporation (NYSE:OXY) has been quite strong recently and CEO Vicki Hollub has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 2nd of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Occidental Petroleum

How Does Total Compensation For Vicki Hollub Compare With Other Companies In The Industry?

Our data indicates that Occidental Petroleum Corporation has a market capitalization of US$60b, and total annual CEO compensation was reported as US$18m for the year to December 2023. That's a notable increase of 18% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.

In comparison with other companies in the American Oil and Gas industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$15m. This suggests that Occidental Petroleum remunerates its CEO largely in line with the industry average. What's more, Vicki Hollub holds US$48m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. It's interesting to note that Occidental Petroleum allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Occidental Petroleum Corporation's Growth Numbers

Occidental Petroleum Corporation's earnings per share (EPS) grew 85% per year over the last three years. Its revenue is down 23% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Occidental Petroleum Corporation Been A Good Investment?

We think that the total shareholder return of 168%, over three years, would leave most Occidental Petroleum Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Occidental Petroleum that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.