Occidental mandarin

14 October 2010 By Christopher Swann

The U.S. oil group is phasing out its $857 mln chief executive, Ray Irani. It’s hard to grudge him handsome pay given the company’s performance. But the company’s board allowed it to get too generous. Shareholders should thank the activists who helped rein in executives’ rewards.

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Occidental Petroleum said on Oct. 14 that Chief Executive Ray Irani will step down next May, and that it would "substantially" cut the pay of its top executives to bring them more in line with industry peers. Irani, who is 75, will continue as executive chairman until the end of 2014, the company said.

Occidental said that Chief Operating Officer Stephen Chazen will take over as CEO.

Irani's pay has garnered media attention over the years. An analysis by the Wall Street Journal in July found he had earned $857 million over the past decade, making him the third most highly paid public company executive in that period.

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