LOS ANGELES – The chairman of Occidental Petroleum Corp., who drew criticism over his compensation as CEO, is out.
Ray R. Irani will step down and be replaced by a former diplomat, Occidental announced Friday after its annual meeting. Shareholders cast their shares against him by more than a 3-to-1 margin.
Irani was chairman and CEO from 1990 to 2011 and became executive chairman in May 2011.
The company said another director, Aziz Syriani, withdrew before the election at the company’s annual meeting.
Occidental said Edward P. Djerejian, a former U.S. ambassador to Israel and Syria, will replace Irani. Former U.S. Energy Secretary Spencer Abraham will become vice chairman.
Irani, 78, has come under fire by shareholders for his compensation. An analysis by the Associated Press found that in 2010, he was the second-highest-paid CEO among Standard & Poor’s 500 companies, with a package of salary, stock awards and other compensation valued at $76.1 million, up 142 percent from the year before.
Big shareholders including the California State Teachers’ Retirement System called his compensation a waste of shareholder money.
The Los Angeles-based oil and gas producer defended the compensation, saying it was tied to Occidental’s performance. The company’s net income jumped 55 percent to $4.53 billion in 2010. Under Irani’s leadership, Occidental grew to become the fourth-largest U.S.-based oil company. Its stock market value was $9 billion in 2000 and is $73 billion now.
Irani had planned to retire at the end of 2014.
Occidental said Friday that CEO Stephen Chazen and the board would call Irani for what the company termed “advice, counsel, and help in advancing the company’s business interests.” Chazen thanked Irani for 30 years of service to Occidental.