Robert Peterson
About Robert Peterson
Robert L. Peterson is Senior Vice President of Occidental Petroleum (since April 2020) and Executive Vice President, Essential Chemistry at Occidental Chemical Corporation (OxyChem) (appointed August 9, 2023). He previously served as Occidental’s Chief Financial Officer (April 2020–August 2023) and has more than 25 years at the company/OxyChem. Peterson holds a Bachelor’s in Mechanical Engineering and an MBA in Corporate Finance from the University of Florida; he was age 52 at the time of his 2023 appointment to EVP Essential Chemistry . Under his remit, OxyChem delivered over $4.9B in sales and more than $1.1B in reported income in 2024, and he led operational readiness for STRATOS (Occidental’s first commercial DAC facility) . Company TSR-linked PSUs for the 2022 grant paid out (ranked 3 of 9 peers; positive absolute TSR) and CROCE PSUs paid at the 200% max on 26.75% three-year CROCE, underscoring returns focus during his executive tenure . Occidental’s 2024 operating performance included $11.7B operating cash flow and >$1.1B OxyChem reported income, supporting increased dividends and debt reduction .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Occidental Petroleum | Senior Vice President | Apr 2020–present | Executive leadership across corporate functions and OxyChem oversight; alignment of OxyChem with company goals and OLCV initiatives . |
| Occidental Chemical (OxyChem) | EVP, Essential Chemistry | Aug 2023–present | Executive oversight of OxyChem and operational readiness for STRATOS and subsequent DAC plants; early operations support for OLCV-linked projects . |
| Occidental Petroleum | Chief Financial Officer | Apr 2020–Aug 2023 | Led Accounting, Tax, Treasury, Internal Audit, IR, Corporate Planning & BD; supported major deleveraging and capital allocation . |
| Occidental Oil & Gas | SVP, Permian EOR | Sep 2019–Apr 2020 | Led Permian enhanced oil recovery business area . |
| Occidental Oil & Gas | VP, Permian Strategy | Dec 2018–Sep 2019 | Strategy leadership for Permian operations . |
| Occidental Oil & Gas | Director, Permian EOR Business Area | Sep 2017–Dec 2018 | Operational leadership in EOR . |
| Occidental Chemical (OxyChem) | President | Aug 2014–Sep 2017 | Led OxyChem; foundation for subsequent Essential Chemistry leadership . |
| OxyChem | Joined OxyChem | 1996 | Long-tenured executive with engineering, operational, and financial leadership depth . |
External Roles
No external public company directorships or committee roles were disclosed for Peterson in the filings reviewed; biographical content focuses on internal roles at Occidental/OxyChem .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | $701,616 | $735,890 | $770,314 |
| Stock Awards ($) | $2,400,147 | $3,421,431 | $3,427,914 |
| Non-Equity Incentive Plan Compensation ($) | $1,106,000 | $1,050,000 | $945,000 |
| Nonqualified Deferred Compensation Earnings ($) | $46,113 | $80,483 | $96,256 |
| All Other Compensation ($) | $271,909 | $288,215 | $278,753 |
| Total ($) | $5,409,817 | $5,576,019 | $5,518,237 |
Key 2024 pay decisions: base salary increased to $775,000 effective Feb 19, 2024; target annual cash incentive (ACI) set at $700,000 with 135% payout; target LTI grant date value $3,200,000 (unchanged vs 2023) .
Performance Compensation
Annual Cash Incentive (ACI) – 2024 Metrics and Outcome
| Metric | Weight | Target | Actual | Weighted Score |
|---|---|---|---|---|
| Total Spend per Barrel | Financial (0–70%) | $30.15 | $29.30 | 55% |
| CROCE (single-year) | Financial (0–70%) | 21% | 20.63% | 30% |
| Emissions Reduction Projects (Scope 1 & 2) | Sustainability (0–30%) | Multi-project targets (LDAR, SensorUp GEMS, reporting enhancements) | Above Target | 25% |
| Low Carbon Ventures (Scope 3) | Sustainability (0–30%) | STRATOS Trains 1 & 2 mechanical completion; advance CE DAC technology; Class VI permitting progress | Above Target | 25% |
| Total Payout | — | — | — | 135% |
Structure: Corporate performance accounts for 100% of ACI; committee may adjust ±25% for individual performance (none applied for 2024) .
Long-Term Incentive (LTI) Program – 2024 Structure and Metrics
| Award | Weighting | Target/Units (Peterson 2024) | Payout Scale | Vesting |
|---|---|---|---|---|
| CROCE PSUs | 30% | Target 15,646 PSUs; Threshold 3,912; Max 31,292 | 0% if CROCE<18%; 25% at 18%; 100% at 20%; 200% at ≥22% (linear interpolation) | 3-year performance (2024–2026); shares settle at end of period . |
| TSR PSUs | 30% | Target 15,646 PSUs; Threshold 3,912; Max 31,292 | Relative TSR vs peer group: 200% for #1; 180% #2; 25% #8; 0% #9; capped at 100% if absolute TSR is negative | 3-year performance (2024–2026); dividend equivalents paid only on PSUs earned . |
| RSUs (time-based) | 40% | 20,861 RSUs | N/A | Vests ratably Feb 28, 2025/2026/2027; 2-year post-vesting holding period on net shares . |
Program features: Double-trigger equity vesting on change-in-control; clawback policy compliant with NYSE Rule 10D-1 and extends to Code of Conduct violations; anti-hedging; no option/SAR repricing without shareholder approval .
Payout history: 2022 CROCE PSUs paid at 200% (three-year CROCE 26.75%); 2022 TSR PSUs ranked 3/9 with positive absolute TSR → above-target payout . As of 12/31/2024, 2023–2024 TSR PSUs were trending below threshold (would result in zero payout), highlighting true at-risk outcomes .
Equity Ownership & Alignment
| Ownership Item | Detail |
|---|---|
| Common stock beneficially owned | 252,181 shares |
| Options exercisable within 60 days | 89,234 |
| Warrants exercisable within 60 days | 16,991 |
| Total beneficial ownership | 358,406 shares; <1% of outstanding |
| Stock ownership guidelines (officers) | SVPs: 3× base salary; holding requirement until guidelines met; unvested PSUs/options do not count |
| Hedging/Pledging | No hedging permitted for officers; awards under LTIP cannot be pledged/transferred (except limited family transfers); restricted stock cannot be pledged |
Vested shares and realized value (2024):
| Name | Shares Acquired on Vesting (#) | Value Realized ($) |
|---|---|---|
| R. Peterson | 82,411 | $4,224,410 |
Outstanding equity detail (12/31/2024):
| Instrument | Grant Date | Status/Shares | Strike/Valuation | Key Dates |
|---|---|---|---|---|
| NQSO | 02/12/2021 | 55,030 exercisable | $25.39; in-the-money at $49.41 year-end | Expires 02/12/2031 |
| NQSO | 02/11/2022 | 22,803 exercisable; 11,401 unexercisable (remaining vested 2/28/2025) | $42.98; in-the-money at $49.41 | Expires 02/11/2032 |
| RSU | 02/11/2022 | 6,204 unvested; vested remainder on 2/28/2025 | $306,540 @ $49.41 | Holding requirement applies |
| RSU | 03/01/2023 | 14,291 unvested | $706,118 @ $49.41 | Vesting through 2026 |
| RSU | 03/01/2024 | 20,861 unvested | $1,030,742 @ $49.41 | Vesting through 2027 |
| CROCE PSUs | 03/01/2023 | 32,156 unearned | $1,588,828 @ $49.41 (indicative) | Perf ends 12/31/2025 |
| CROCE PSUs | 03/01/2024 | 31,292 unearned | $1,546,138 @ $49.41 (indicative) | Perf ends 12/31/2026 |
| TSR PSUs | 03/01/2023 | 4,020 unearned | $198,628 @ $49.41 (indicative) | Perf ends 12/31/2025 |
| TSR PSUs | 03/01/2024 | 3,912 unearned | $193,292 @ $49.41 (indicative) | Perf ends 12/31/2026 |
Employment Terms
| Scenario (R. Peterson) | RSU Vesting Value ($) | CROCE PSU Value ($) | TSR PSU Value ($) | Options ($) | Cash Severance ($) | Pro-Rata Bonus ($) | Health & Welfare ($) | Outplacement ($) | Total ($) |
|---|---|---|---|---|---|---|---|---|---|
| Retirement (with consent) | $841,452 | $1,182,285 | — | $61,471 | — | $945,000 | — | — | $3,030,208 |
| Death/Disability | $841,452 | $895,787 | — | $73,308 | — | $945,000 | — | — | $2,755,547 |
| Involuntary Termination (without cause) | $841,452 | $895,787 | — | $61,471 | $2,212,500 | $700,000 | $60,563 | $30,000 | $4,801,773 |
| CIC (no qualifying termination) | No acceleration | Converted to restricted shares at target; service-based vesting | Converted to restricted shares at target; service-based vesting | No effect | — | — | — | — | — |
| CIC + Qualifying Termination | $2,043,400 | $1,824,367 | $1,567,483 | $73,308 | $2,950,000 | $945,000 | $60,563 | $30,000 | $9,494,121 |
Policy features: Double-trigger equity vesting (CIC plus qualifying termination); golden parachute policy caps benefits >2.99× salary+ACI without shareholder approval; clawback; anti-hedging; prohibition against repricing options/SARs without shareholder approval .
Nonqualified Deferred Compensation (SRP II/MDCP):
| Plan | 2024 Company Contribution ($) | 2024 Above-Market Earnings ($) | Aggregate Balance 12/31/24 ($) |
|---|---|---|---|
| SRP II | $241,133 | $152,344 | $2,740,043 |
| MDCP | $0 | $0 | $0 |
Company Performance Context
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | $36,634,000,000 * | $28,257,000,000 * | $26,725,000,000 * |
| EBITDA ($) | $20,591,000,000* | $13,019,000,000* | $12,964,000,000* |
*Values retrieved from S&P Global.
Additional 2024 highlights: Operating cash flow $11.7B; free cash flow before working capital $4.9B; OxyChem reported income >$1.1B; dividend increases (>22% in 2024, ~9% in 2025); debt repayment of $4.5B near-term target .
Investment Implications
- Alignment: Peterson’s pay mix is heavily at-risk (84% variable for non-CEO NEOs), with LTI tied to absolute CROCE and relative TSR; TSR PSUs can pay zero (2023–2024 trending below threshold), demonstrating genuine downside risk .
- Vesting and potential selling pressure: RSUs vest annually through Feb 28, 2027 with a two-year post-vesting holding requirement, tempering near-term selling pressure; CROCE/TSR PSUs settle on performance completion (2025/2026), creating event-driven disposition windows .
- Ownership/skin in the game: Peterson beneficially owns 252,181 common shares plus in-the-money options (strikes $25.39 and $42.98 vs $49.41 year-end), aligning incentives to stock performance; total beneficial ownership <1% of outstanding shares (consistent with senior executive norms) .
- Retention economics and change-in-control: CIC+qualifying termination package (~$9.5M) and double-trigger equity vesting provide protection without excessive parachute risk (2.99× cap), which supports retention but limits shareholder downside .
- Strategic execution signals: Leadership of OxyChem (> $1.1B income) and STRATOS readiness underscores operating discipline and capital efficiency consistent with CROCE-driven incentives; say-on-pay outcomes (≈97% approval 2021–2024) suggest investor support for design .