Form 4: Occidental Petroleum SVP Boosts Stake with RSU Award

Occidental Petroleum's Senior Vice President, Kenneth Dillon, increased his direct beneficial ownership through a new restricted stock unit award, partially offset by shares withheld for taxes.

Summary

• Kenneth Dillon, Senior Vice President of Occidental Petroleum Corporation (OXY), reported changes in his beneficial ownership of common stock.
• On February 28, 2026, 10,131 shares of common stock were withheld to satisfy tax obligations upon the vesting of previously reported restricted stock units (RSUs) at a price of $53.08 per share.
• On March 1, 2026, Mr. Dillon was awarded 27,883 restricted stock units (RSUs) under the Issuer's Amended and Restated 2015 Long-Term Incentive Plan.
• These new RSUs represent a contingent right to receive one share of the Issuer's common stock upon vesting and will vest in three equal annual installments beginning on February 28, 2027.
• Following these transactions, Mr. Dillon directly beneficially owns 372,201 shares of common stock.
• Additionally, Mr. Dillon indirectly owns 20,030 shares through the OPC Savings Plan as of February 27, 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, reflecting ongoing executive compensation and an increase in direct beneficial ownership, which aligns management incentives with long-term company performance.

Positives

• Kenneth Dillon, Senior Vice President, received an award of 27,883 Restricted Stock Units (RSUs), indicating continued incentive and alignment with shareholder interests.
• The RSU award increases Mr. Dillon's direct beneficial ownership of Occidental Petroleum common stock to 372,201 shares.

Negatives

• 10,131 shares of common stock were disposed of to cover tax withholding obligations, which is a standard procedure but reduces immediate direct ownership.

Future Outlook

The newly awarded Restricted Stock Units (RSUs) will vest in three equal annual installments, commencing on February 28, 2027, aligning management incentives with long-term company performance.

Industry Context

StockSavvy.ai notes that RSU awards are a common form of executive compensation in the energy sector, aligning executive interests with long-term shareholder value. This type of award is typical for a Senior Vice President at a major oil and gas company like Occidental Petroleum.

Comparison to Industry Standards

• The RSU award structure, with multi-year vesting, is consistent with executive compensation practices observed at peer companies in the energy sector, such as ExxonMobil and Chevron, which often use long-term incentives to retain talent and align management with shareholder returns.

Stakeholder Impact

• Shareholders: Increased alignment of executive interests with shareholder value through long-term equity incentives.
• Employees: Standard executive compensation practices may reinforce overall compensation strategy.

Next Steps

• The first installment of the newly awarded RSUs will vest on February 28, 2027.
• Subsequent installments of the RSUs will vest annually thereafter.

Key Dates

Recommendation

This Form 4 reports routine executive compensation activities, including the vesting of restricted stock units and a new RSU award. While it shows continued insider ownership and alignment, it does not present new information that would fundamentally alter the investment thesis for Occidental Petroleum, thus a 'hold' recommendation is appropriate.

Keywords

OXY, Occidental Petroleum, Form 4, insider trading, RSU, restricted stock units, executive compensation, Kenneth Dillon