Occidental Petroleum Corp. will tie results achieved in the company’s low-carbon business to its CEO’s cash bonus this year, the oil and gas producer said in a securities filing on March 26.
Occidental is setting ambitious climate targets and trying to turn its low-carbon unit into a profitable business after it cut jobs and output last year when the coronavirus pandemic hammered global energy demand.
The company increased the weight assigned to its emissions reductions and low-carbon ventures unit to 30% of CEO Vicki Hollub’s target bonus, according to its proxy filing.
Hollub’s target compensation for the year was reduced by 29% from its pre-COVID-19 levels, the filing said.
RELATED:
Occidental Petroleum Claims Green Push ‘Does More Than Tesla’
Occidental’s carbon capture business could be worth between $2 billion and $5 billion, according to Mizuho Securities analyst Daniel Boyd.
The company before year-end will set medium-term net emissions reduction targets for sometime around 2030, it said in the filing. The targets come after a shareholder proposal and discussions with the shareholder activist group Follow This earlier this year, the company said.
Occidental in November set a target to reach net-zero emissions in its operations before 2040.
It loaded up on debt in 2019 to acquire an oil rival, but has been an early mover among U.S. oil producers in setting net-zero emissions goals. Last year it created the low-carbon group to commercialize pulling CO₂ out of the atmosphere through a process known as direct air capture.
Occidental shares closed 4% higher at $27.76 on March 26. They are up nearly 60% so far this year as oil prices and demand improve from pandemic-driven lows.
Recommended Reading
Talos Energy CEO Tim Duncan Steps Down; Mills to Take Helm
2024-08-30 - An analyst said Talos Energy President and CEO Tim Duncan was forced out over share price performance, although other factors may have played a role.
Dividends Declared in the Week of Aug. 19
2024-08-23 - As second-quarter earnings wrap up, here is a selection of dividends declared in the energy industry.
Gulfport Energy to Offer $500MM Senior Notes Due 2029
2024-09-03 - Gulfport Energy Corp. also commenced a tender offer to purchase for cash its 8.0% senior notes due 2026.
Pembina Completes Partial Redemption of Series 19 Notes
2024-07-08 - The redemption is part of Pembina Pipeline’s $300 million (US$220.04 million) aggregate principal amount of senior unsecured medium-term series 19 notes due in 2026.
Offshore Guyana: ‘The Place to Spend Money’
2024-07-09 - Exxon Mobil, Hess and CNOOC are prepared to pump as much as $105 billion into the vast potential of the Stabroek Block.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.