Occidental Petroleum Corporation (Oxy) is one of the leading international energy companies specializing in oil, gas, and chemicals. With a strong focus on sustainability and innovation, the company has maintained its position as a key player in the global energy sector. At the helm of this industry giant is Vicki Hollub, who has been serving as the President and CEO since 2016.
In this blog, we’ll explore Vicki Hollub’s salary, net worth, and her journey as a leader in one of the most competitive industries.
About Occidental Petroleum
Occidental Petroleum Corporation, commonly known as Oxy, is a global energy company with operations spanning oil and gas exploration, production, and chemical manufacturing. Founded in 1920 and headquartered in Houston, Texas, Occidental has grown to become one of the largest oil producers in the United States and a significant player in the global energy market.
The company operates in several regions, including the Permian Basin, the Middle East, and Latin America. Its focus on sustainability is evident in its investments in carbon capture technology and other low-carbon energy solutions. Occidental Petroleum is also a member of the Oil and Gas Climate Initiative, showcasing its commitment to reducing greenhouse gas emissions and advancing clean energy initiatives.
Who is Vicki Hollub?
Background and Career Journey
Vicki Hollub has been with Occidental Petroleum for over 40 years, making her one of the most experienced leaders in the energy industry. She joined the company in 1982 after Cities Service was acquired by Occidental and has held various management and technical positions across three continents, including the United States, Russia, Venezuela, and Ecuador.
Before taking on the role of CEO, Hollub served as President and Chief Operating Officer of Occidental Petroleum. She oversaw the company’s oil and gas, chemical, and midstream operations, gaining valuable experience across all aspects of the business.
Her previous leadership roles include:
- Senior Executive Vice President and President of Oxy Oil and Gas, overseeing operations in the U.S., Middle East, and Latin America.
- Executive Vice President of U.S. Operations, managing the company’s activities in the Permian Basin and California.
- President and General Manager of Permian Basin Operations, where she helped grow the company’s presence in one of the most productive oil regions in the U.S.
Education and Recognition
Hollub graduated from the University of Alabama with a Bachelor of Science degree in Mineral Engineering. She was inducted into the university’s College of Engineering Distinguished Fellows in 2016 and elected to the National Academy of Engineering Class of 2024.
Her leadership has earned her recognition in the energy sector, including serving on the boards of Lockheed Martin and the American Petroleum Institute. She is also a member of the Oil and Gas Climate Initiative and a past chair of the World Economic Forum’s Oil and Gas Community.
Occidental Petroleum CEO Salary Breakdown
Vicki Hollub’s compensation reflects her leadership role and the company’s financial performance in the competitive energy market. In 2023, her total compensation ranged from $17.7 million to $18.5 million, marking an 18% increase from the previous year.
Key Components of Vicki Hollub’s 2023 Compensation
- Base Salary:
- Hollub’s base salary was approximately $1.5 million to $1.56 million.
- This fixed salary accounted for less than 10% of her total compensation, reflecting a focus on performance-based pay.
- Equity/Stock Awards:
- The largest portion of Hollub’s compensation—approximately $12 million—came from stock awards.
- These equity awards are tied to Occidental Petroleum’s performance and shareholder returns.
- Total Cash Compensation:
- Hollub’s total cash compensation, including her base salary and bonuses, was approximately $4.8 million.
- Other Benefits:
- Additional perks, such as retirement contributions, health insurance, and executive allowances, were also part of her compensation package.
Performance-Based Compensation
Occidental Petroleum’s executive pay structure heavily emphasizes performance-based incentives. This approach aligns the CEO’s earnings with the company’s financial success, ensuring that leadership decisions benefit shareholders and drive growth.
Vicki Hollub’s Net Worth
Estimated Net Worth
Vicki Hollub’s net worth is estimated to be over $50 million, making her one of the wealthiest executives in the energy industry. Her wealth is primarily derived from her substantial earnings at Occidental Petroleum and her stock holdings in the company.
- Stock Holdings:
- As of early 2024, Hollub held approximately $48 million worth of company shares.
- Her stock awards, which make up the majority of her annual compensation, have significantly contributed to her net worth.
- Career Earnings:
- Hollub has consistently earned multi-million-dollar compensation packages during her tenure as CEO.
- Her total earnings over the years have played a key role in building her wealth.
- Other Investments:
- In addition to her earnings from Occidental Petroleum, Hollub may have other investments and assets that contribute to her overall net worth.
Comparison to Industry Peers
- Darren Woods (ExxonMobil CEO): Estimated net worth of $80–$100 million, with a total compensation of $35.9 million in 2023.
- Michael Wirth (Chevron CEO): Estimated net worth of $50–$70 million, with a total compensation of $23.6 million in 2023.
- Ryan Lance (ConocoPhillips CEO): Estimated net worth of $40–$60 million, with a total compensation of $22.5 million in 2023.
Vicki Hollub’s net worth and compensation are competitive within the energy industry, reflecting Occidental Petroleum’s position as a major player in the market.
CEO Pay Ratio and Industry Comparison
CEO-to-Median Employee Pay Ratio
Occidental Petroleum reported a CEO-to-median employee pay ratio that is higher than many other industries but relatively standard for the energy sector. This ratio highlights the significant pay gap between executives and regular employees, which is common in large corporations.
Comparison to Industry Peers
- ExxonMobil CEO Pay Ratio: Approximately 300:1 in 2023.
- Chevron CEO Pay Ratio: Approximately 270:1 in 2023.
- ConocoPhillips CEO Pay Ratio: Approximately 250:1 in 2023.
Occidental Petroleum’s CEO pay ratio is slightly lower compared to some of its industry peers, reflecting the company’s efforts to balance executive compensation with employee wages.
Factors Influencing Occidental Petroleum CEO Compensation
1. Company Performance
- Occidental Petroleum’s financial performance plays a significant role in determining the CEO’s compensation.
- In 2023, the company achieved strong revenue growth, driven by high oil prices and efficient operations.
2. Sustainability Initiatives
- Hollub has been a vocal advocate for sustainability, leading Occidental Petroleum’s efforts in carbon capture technology and low-carbon energy solutions.
- These initiatives align with the company’s long-term strategy and contribute to the performance-based aspects of Hollub’s compensation.
3. Strategic Decisions
- Hollub’s leadership in navigating industry challenges, such as fluctuating oil prices and geopolitical risks, has been critical to Occidental Petroleum’s success.
- Her decisions, including strategic acquisitions and investments in renewable energy, have positioned the company for future growth.
Public Perception and Controversy
Public Opinion on CEO Pay
- Supporters’ Perspective:
- Many believe Hollub’s compensation is justified, given her extensive experience and the company’s strong performance under her leadership.
- The emphasis on performance-based pay ensures that her earnings are tied to the company’s success.
- Critics’ Perspective:
- Some critics argue that high CEO pay contributes to income inequality, particularly in industries with large pay gaps between executives and employees.
- Environmental activists have raised concerns about the oil and gas industry’s impact on climate change, which can influence perceptions of executive pay.
Transparency in Compensation
Occidental Petroleum is transparent about its executive pay practices, providing detailed information in its annual proxy statements. This transparency helps build trust among stakeholders and ensures accountability in executive pay decisions.
Occidental Petroleum’s Financial Performance and CEO Pay
Occidental Petroleum has delivered strong financial results under Vicki Hollub’s leadership. Key highlights include:
- Revenue Growth: The company has achieved significant revenue growth, driven by high oil prices and efficient operations.
- Profitability: Occidental Petroleum has maintained strong profit margins, reflecting its ability to navigate industry challenges.
- Sustainability Leadership: Hollub has positioned the company as a leader in carbon capture technology and low-carbon energy solutions.
These achievements have directly influenced Hollub’s performance-based pay, which accounts for over 90% of her total compensation.
Future Outlook for Occidental Petroleum CEO Compensation
Vicki Hollub’s compensation is expected to remain competitive in the coming years, driven by Occidental Petroleum’s continued growth and innovation. Key factors influencing her future earnings include:
- Global Energy Demand:
- The company’s ability to capitalize on rising global energy demand will impact its financial performance and Hollub’s pay.
- Sustainability Goals:
- Hollub’s leadership in advancing Occidental Petroleum’s sustainability initiatives, including carbon capture and low-carbon energy solutions, will play a key role in determining her future compensation.
- Strategic Growth:
- Investments in new technologies and partnerships will shape Occidental Petroleum’s growth trajectory and influence executive pay structures.
Key Takeaways
- 2023 Compensation: Vicki Hollub earned $17.7 million to $18.5 million, with over 92% of her pay tied to performance-based incentives.
- Net Worth: Hollub’s estimated net worth exceeds $50 million, driven by her substantial earnings and stock holdings in Occidental Petroleum.
- CEO Pay Ratio: The CEO-to-median employee pay ratio is competitive within the energy sector, reflecting industry norms.
- Leadership Impact: Hollub’s extensive experience and strategic focus on sustainability have positioned Occidental Petroleum for long-term success.
- Future Outlook: As Occidental Petroleum continues to lead the energy transition, Hollub’s compensation will likely reflect the company’s growth and innovation.
Conclusion
Vicki Hollub’s leadership at Occidental Petroleum has been transformative, driving the company’s growth, sustainability initiatives, and market leadership. Her compensation package of $17.7 million to $18.5 million in 2023 highlights the alignment between executive pay and company performance.