Why should ANY oil company executive get ANY bonus now?

[Ward Smith + 6,615]

Yahoo article about Occidental

Edited April 3, 2020 by Ward Smith
Link didn't work

[Old-Ruffneck + 1,239]

14 minutes ago, Ward Smith said:

Yahoo article about Occidental

Just remember, is Bloomberg Opinion. Bet the numbers are close tho….Sure some pissed off investors me thinks!

[Ward Smith + 6,615]

Quote

Here’s a quick sanity check by way of a chart. See which of the two assessments most closely aligns with this set of squiggles:

One detects some uneasiness on Oxy’s part. It took the trouble to lay out “realizable” pay for executives in its proxy; the idea being that the actual value of stock-based awards plummeted with Oxy’s price. Hence, while Hollub’s headline total compensation for 2019 clocks in at almost $16 million, the company calculates its value as of March 24 was a mere $4.4 million. Salaries for 2020 have been slashed (although these typically account for only 10-15% of total compensation). Plus, the proxy discloses that Oscar Brown, the head of strategy who played a leading role in the Anadarko deal, is no longer with the company.

A good friend of mine was comfortably retired with all his Anadarko stock. Now where is he? Mostly wiped out. But yeah, bonuses for the Occidental execs. 

[Prometheus1354 + 178]

3 hours ago, Ward Smith said:

A good friend of mine was comfortably retired with all his Anadarko stock. Now where is he? Mostly wiped out. But yeah, bonuses for the Occidental execs. 

Ward;  your comment conveys an obvious 'concern' at the least and more, a possible strong degree of resentment.  I surely do not pretend to be positioned for judgement. I came across this info in an article from the International Business Times (IBT) 

{Under the approved deal, Anadarko’s shareholders will receive $59.00 in cash and 0.2934 shares of Occidental’s common stock for every share of Anadarko common stock.}

If he chose to keep his nest egg entirely in one basket as it were and the Oxy stock took a nosedive without his getting out.  How is that the fault of any executives at Oxy mush less the CEO? Plus it would seem that if he held a sizeable sum of stock in Anadarko; he got a nice check too go with the Oxy shares.

No matter the industry, consolidation is a part. I've worked for companies bought. More times than not, layoffs ensued.  I never held any resentment.  Then again, working in Silicon Valley; people are always on the move no matter the circumstance.  

[James Regan + 1,776]

I believe they got one yesterday before that Tweet.

[Ward Smith + 6,615]

9 hours ago, Prometheus1354 said:

Ward;  your comment conveys an obvious 'concern' at the least and more, a possible strong degree of resentment.  I surely do not pretend to be positioned for judgement. I came across this info in an article from the International Business Times (IBT) 

{Under the approved deal, Anadarko’s shareholders will receive $59.00 in cash and 0.2934 shares of Occidental’s common stock for every share of Anadarko common stock.}

If he chose to keep his nest egg entirely in one basket as it were and the Oxy stock took a nosedive without his getting out.  How is that the fault of any executives at Oxy mush less the CEO? Plus it would seem that if he held a sizeable sum of stock in Anadarko; he got a nice check too go with the Oxy shares.

No matter the industry, consolidation is a part. I've worked for companies bought. More times than not, layoffs ensued.  I never held any resentment.  Then again, working in Silicon Valley; people are always on the move no matter the circumstance.  

I think you're right. I don't know all the details, his "insider" information told him Anadarko had good upside and I suspect he held onto more than he should have out of that optimism. He took the retirement package and I don't know if he had restricted shares or options. Also I think he was counting on the dividends. 

But you're absolutely right, in business as in life there are no guarantees. My real point in all this is whether anyone believes Occidental management deserves their bonuses. Do you? 

[KeyboardWarrior + 527]

I've been playing with oxy shares for the past week or so. I made $1200 yesterday from an upswing after buying in at $10.25. 

[Prometheus1354 + 178]

4 hours ago, Ward Smith said:

I think you're right. I don't know all the details, his "insider" information told him Anadarko had good upside and I suspect he held onto more than he should have out of that optimism. He took the retirement package and I don't know if he had restricted shares or options. Also I think he was counting on the dividends. 

But you're absolutely right, in business as in life there are no guarantees. My real point in all this is whether anyone believes Occidental management deserves their bonuses. Do you? 

Appreciate the reply.   No, I don't to answer your question.

My feeling is the shareholders should have rejected the merger.  While it is true that Anadarko had been a nice little role in the GoM; they were way too leveraged and the shareholders should have seen that. Clearly the Board was selectively 'blind' too it...

[Ward Smith + 6,615]

11 minutes ago, Prometheus1354 said:

Appreciate the reply.   No, I don't to answer your question.

My feeling is the shareholders should have rejected the merger.  While it is true that Anadarko had been a nice little role in the GoM; they were way too leveraged and the shareholders should have seen that. Clearly the Board was selectively 'blind' too it...

Interesting. My understanding was the prize to Oxy was the Permian acreage. The leftovers from the Kerr McGee purchase in the gulf are getting shut down to my knowledge. 

[0R0 + 6,251]

23 hours ago, Ward Smith said:

Yahoo article about Occidental

Obviously not if they levered up the company at the top of the market to expand production and invest and left it vulnerable to a crash. It was not improbable that a price crash would occur. There was a big one just 5 years before. 

Those that managed to hedge, cut capital expenditure responsibly should have their bonus if their company is doing well. On average the industry doesn't deserve bonuses. 

[Prometheus1354 + 178]

4 hours ago, Ward Smith said:

Interesting. My understanding was the prize to Oxy was the Permian acreage. The leftovers from the Kerr McGee purchase in the gulf are getting shut down to my knowledge. 

Sorry wasn't able to specify (Kerr-McGee) originated Anadarko projects.  But per Offshore Energy Today & Offshore-Mag stories addressing Anadarko operations in the Gulf:

Offshore-Mag (2018): Anadarko dedicating a full 25% {$1.2 Billion} of capex ($4.8 Billion) in the Gulf.

Oil & Gas Journal in 2019: Anadarko pivoted and allotted 70% of capex too the Permian in the sum of $1.4 Billion. With a slight over all cut in capex too $4.3 Billion from $4.8 Billion in 2018.

Yes, it does appear that Oxy were more interested in the Permian; than the GoM aspects of the portfolio they acquired via Anadarko.  But Anadarko had reported in 2016-17 several significant discoveries in the Gulf. Most within close proximity too existing Anadarko infrastructure such as Horn Mtn, Lucius, Nansen, Boomvang & others