Occidental Petroleum reaches truce with activist investor Carl Icahn
Occidental Petroleum announces salary cuts amid coronavirus
Occidental Petroleum says employee salary cuts will be enforced up to 30 percent and the CEO will take a pay cut of more than 80 percent. FOX Business’ Ashley Webster with more.
Occidental Petroleum Corp., the largest oil producer in the giant Permian Basin, has ceded to activist investor Carl Icahn's demands and announced deep spending cuts in a bid to survive the steepest crude-price plunge in decades.
Continue Reading Below
The truce with Mr. Icahn, unveiled Wednesday, is the culmination of a monthslong battle that began last year after Occidental outbid Chevron Corp. for Anadarko Petroleum Corp.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Two of Mr. Icahn's deputies, Andrew Langham and Nicholas Graziano, will receive Occidental board seats under the agreement. Herbalife Nutrition Ltd. board member Margarita Paláu-Hernández will join as an independent director.
Occidental's board will also create a new board oversight committee, with at least two of the new board members, that must be informed of any offers to acquire the company or its assets.
Occidental also installed its former chief executive Stephen Chazen as chairman.
Meanwhile, the company is cutting salaries for its U.S. employees by up to 30% to slash expenses, according to an internal email reviewed by The Wall Street Journal. On Wednesday morning, it said it would cut its 2020 capital spending budget by about $800 million, on top of a previously announced $1.7 billion cut. Reductions in operating and overhead spending are expected to total about $600 million, the company said Wednesday. The company said these steps would reduce its oil and natural gas output in 2020 by 6%.