Jeff Simmons
Senior Vice President and Chief Petrotechnical Officer at OXY
Executive
About Jeff Simmons
Senior Vice President, Technical & Operations Support and Chief Petrotechnical Officer (since 2021). He directs exploration across the Gulf of Mexico and international assets, manages corporate subsurface engineering and geoscience, and oversees reserve assurance; he joined Occidental more than 23 years ago and leads the Strategic Technical Excellence Program (STEP) to advance technical capabilities . During his tenure as an executive officer (appointed May 2023), company performance remained strong: in 2024 OXY generated $11.7B of operating cash flow and $4.9B of free cash flow before working capital, repaid $4.5B debt ahead of schedule, and achieved record U.S. oil production; OxyChem delivered >$1.1B of income (context for incentive metrics) . OXY’s pay program tied PSU payouts to TSR and CROCE; the 2022 CROCE PSU paid at 200% and the 2022 TSR PSU paid ~176% based on three‑year results through 2024 (framework relevant for Simmons’ LTI) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Occidental Petroleum (OXY) | SVP, Technical & Operations Support; Chief Petrotechnical Officer | 2021–present | Rebuilt Gulf of Mexico exploration, acquiring 60 OCS blocks in 2023 and expanding gross lease position ~70% vs. end‑2021; oversaw five GOM exploration wells (one discovery under evaluation for Lucius tie‑back); sustained production growth in Oman (record combined production on Blocks 9/27/65) and enabled first oil sales from Abu Dhabi Block 3; leads STEP; manages subsurface/geoengineering and reserve assurance . |
Fixed Compensation
| Item | 2023 |
|---|---|
| Base salary | $665,890 |
| Target annual cash incentive (ACI) | $700,000 |
| ACI payout factor | 150% of target (all NEOs) |
| ACI paid (Non‑equity incentive plan comp) | $1,050,000 |
| Stock awards (grant‑date fair value, total) | $3,346,000 |
| Total compensation | $5,461,560 |
Notes: Simmons became an executive officer in May 2023; his 2023 comp elements (e.g., ACI target) were set by the CEO given timing of appointment . The 2023 ACI program paid above target based on company performance (see Performance Compensation) .
Performance Compensation
Annual Cash Incentive (ACI) – 2023 Structure and Outcome
| Metric | Weight | Targeting approach | Result | Payout impact |
|---|---|---|---|---|
| Total spend per barrel (TSPB) | Part of 70% “Financial” | Cost efficiency vs. plan | Company achieved above‑target outcome across metrics in aggregate | Contributed to 150% total ACI factor |
| CROCE (Cash Return on Capital Employed) | Part of 70% “Financial” | Single‑year CROCE vs. plan | Included to balance commodity effects | See total result 150% |
| Sustainability (Scope 1–2 projects; Scope 3 LCV milestones) | 30% | Emissions reduction projects; DAC/CCS commercialization milestones | Above target (e.g., STRATOS progress; emissions programs) | See total result 150% |
All NEOs, including Simmons, were paid at 150% of ACI target for 2023 based on these outcomes .
Long‑Term Incentives (LTI) – 2023 Grants to Simmons
| Award | Grant date | Target units/# | Max units/# | Grant‑date fair value |
|---|---|---|---|---|
| RSU (time‑vested) | 03/01/2023 | 25,122 | n/a | $1,500,035 |
| TSR PSU (performance‑vested) | 03/01/2023 | 25,122 | 50,244 | $1,845,965 |
Program design notes:
- In 2023, OXY discontinued stock options, increasing performance weighting; the LTI mix was 30% TSR PSU, 30% CROCE PSU, 40% RSU. Because Simmons was not yet an executive officer when 2023 LTI was approved, his 2023 LTI consisted of 50% TSR PSU and 50% RSU (no CROCE PSU) .
- TSR PSU payout is based on three‑year relative TSR vs. performance peers with a cap at 100% if absolute TSR is negative; linear interpolation applies between ranks; cumulative dividend equivalents pay only on earned units at the end of the period .
2023–2026 RSU Vesting and Holding
- RSUs vest ratably over three years; for 2023 grants, one‑third vested 2/29/2024, with remaining tranches scheduled to vest 2/28/2025 and 2/28/2026; RSUs carry a two‑year post‑vesting holding requirement under the program .
Equity Ownership & Alignment
| Item | Details |
|---|---|
| Unvested RSUs (12/31/2023) | 16,410 (2021 grant), 23,266 (2022), 25,122 (2023) |
| Unvested TSR PSUs (12/31/2023) | 48,222 (2022 grant), 25,122 (2023) |
| Stock options | None listed for Simmons in Outstanding Equity table |
| Stock ownership guidelines | Senior Vice Presidents must hold stock equal to 3× base salary; holding until guideline met |
| Anti‑hedging | Directors and employees (including executives) are prohibited from hedging OXY equity |
Employment Terms
- Severance (outside change‑in‑control): 1.5× (base salary + target annual bonus), pro‑rata target bonus year of termination, up to two years of life/medical/dental at active rates, pro‑rata vesting of outstanding equity (performance awards remain subject to actual performance), and up to nine months outplacement .
- Change‑in‑Control (double trigger within 2 years): 2.0× (base salary + target annual bonus), pro‑rata bonus (greater of target or actual), two years of welfare benefits, full acceleration of equity (performance awards vest at greater of target or actual), and up to nine months outplacement; “net best” cutback applies to avoid 280G excise taxes .
- Retirement Policy: If retirement‑eligible (≥60 years old and ≥10 years of service, notice/cooperation/covenants), executives receive accelerated vesting (performance awards subject to actual performance) and pro‑rated bonus for year of retirement; as of 12/31/2023, Simmons was among executives eligible based on age and service .
Related Party and Governance
- Related party transaction disclosure: Simmons’ son‑in‑law (Corey N. Hardegree) is employed at OXY as a lead production optimization engineer; total 2024 compensation was less than $350,000 and Simmons was not involved in hiring, evaluation, or compensation decisions; approved per OXY’s related party transaction policy .
- Clawback: OXY maintains an NYSE‑compliant clawback policy for restatements and also permits clawback/forfeiture for misconduct under the LTIP and Code of Conduct .
- Golden parachute restraint: Company policy restricts CIC benefits >2.99× salary+bonus absent shareholder approval .
Performance & Track Record (role‑specific highlights)
- Gulf of Mexico: Led exploration rebuild—acquired 60 OCS blocks across two 2023 federal lease sales; ~70% increase in gross GOM lease position vs. end‑2021; five wells drilled in 2023 with one discovery under tie‑back evaluation to Lucius .
- International: Oversaw exploration supporting record combined production in Oman Blocks 9/27/65 and first oil sales from Abu Dhabi Block 3 .
- Corporate technical leadership: Manages subsurface engineering/geoscience support for global development projects; oversees reserve assurance; leads STEP to elevate technical excellence .
Compensation Peer Group & Say‑on‑Pay (program context)
- Peer benchmarking: Committee reviews peers but does not benchmark to a specific percentile; uses relative TSR (vs. performance peers) and absolute CROCE for PSU design .
- Say‑on‑Pay outcomes: Approximately 97% support at the 2021, 2022, 2023, and 2024 annual meetings, indicating broad investor endorsement of pay design .
Investment Implications
- Alignment and upside/downside: 2023 compensation was predominantly equity‑based (stock awards $3.35M of $5.46M), and Simmons’ unvested RSUs/PSUs create multi‑year alignment with TSR and return metrics; TSR PSU caps if absolute TSR is negative mitigate windfall risk .
- Retention vs. mobility: Retirement eligibility introduces potential mobility; however, OXY’s Retirement Policy conditions (notice, transition support) and pro‑rata/actual‑performance treatment of awards temper abrupt departures while preserving continuity .
- Supply/vesting overhang: Scheduled RSU vesting in 2025–2026 and PSU performance periods maturing over 2025–2026 could incrementally add tradable shares upon settlement; no options outstanding (limits incremental leverage) .
- Governance quality: Double‑trigger CIC, rigorous clawback/anti‑hedging, and golden‑parachute cap reduce governance risk; related‑party employment was reviewed and managed via policy .