Troubled Shale Giant Slashes CEO Salary By 81%

0
7

Occidental Petroleum will cut certain employee salaries by 30 percent in response to the steep drop in , Reuters reported, citing an internal document. CEO Vicki Hollub will see her compensation cut by 81 percent, the memo showed.

The shale , which last year acquired Anadarko, is the largest in the Permian, but with plummeting prices, its production costs now exceed the benchmark WTI, which has slumped to less than $24 a barrel.

Debt is also a problem. Oxy agreed to pay $55 billion in cash for Anadarko, which saddled it with total debt of $39 billion. Its have shed 75 percent since the start of the price war, and Moody’s last week downgraded its bonds to junk status.

Oxy planned to sell $15 billion worth of assets to pay down the debt, but these plans have run into delays and obstacles, and now, with the crash, offloading them might prove an arduous task.

Article continues below Advertisement...

“During this unprecedented time impacting our industry, and the global economy, we’re taking aggressive actions to ensure the of the company while protecting jobs,” spokeswoman Melissa Schoeb said in a statement quoted by Reuters.

“We notified our employees of a number of measures we will be implementing, including compensation reductions, which will impact everyone at the company starting with the management team,” Schoeb also said.

The salary cut will concern employees earn more than $76,000 a year.

Earlier this month, in response to the price funk, Occidental cut its spending plans by $1.9 billion and scaled back dividends, expecting to save some $4.1 billion to $4.3 billion annually, Reuters reported

Occidental is far from the only one cutting expenses. Across the U.S. , companies have already announced spending cuts that average 30 percent, according to Reuters data, and many expect curtailed production. The international list of spending cutters includes supermajors such as Exxon, Chevron, Shell, Total, and Eni.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Source: Investing.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here