Occidental Petroleum 2002 Annual Report Download - page 79

April 20, 2011. At December 31, 2002, 4,049,638 shares were available under this
plan for future awards, which may include stock options, SARs, restricted stock,
performance stock and dividend equivalents.
Options to purchase common stock of Occidental have been granted to
officers and employees under stock option plans adopted in 1987, 1995 and 2001,
as discussed above. During 2002, options for 4,289,285 shares became
exercisable, and options for 16,185,809 shares were exercisable at December 31,
2002 at a weighted-average exercise price of $23.33. Generally, these options
vest over three years with a maximum term of ten years and one month. At
December 31, 2002, no SARs were outstanding.
The following is a summary of stock option transactions during 2002, 2001
and 2000 (shares in thousands):
2002 2001 2000
-------------------------- -------------------------- --------------------------
WEIGHTED Weighted Weighted
AVERAGE Average Average
SHARES EXERCISE PRICE Shares Exercise Price Shares Exercise Price
=================================== ======== ============== ======== ============== ======== ==============
BEGINNING BALANCE 25,390 $ 23.396 18,217 $ 21.532 13,033 $ 23.249
Granted or issued 4,904 $ 26.430 11,039 $ 26.171 5,577 $ 20.144
Exercised (3,097) $ 21.115 (3,395) $ 22.398 (93) $ 19.968
Canceled or expired (225) $ 22.518 (471) $ 23.495 (300) $ 25.018
-------- -------- --------
ENDING BALANCE 26,972 $ 24.219 25,390 $ 23.396 18,217 $ 21.532
OPTIONS EXERCISABLE AT YEAR END 16,186 15,023 8,374
=================================== ======== ======== ========
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The following is a summary of stock options outstanding at December 31,
2002 (shares in thousands):
OPTIONS OUTSTANDING OPTIONS EXERCISABLE
----------------------------------------- -------------------------------
WEIGHTED WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE
RANGE OF REMAINING EXERCISE EXERCISE
EXERCISE PRICES OUTSTANDING CONTRACTUAL LIFE PRICE EXERCISABLE PRICE
=================== ============= ================== ================== ============= =============
$14.88 to $22.00 7,732 6.85 Years $ 19.67 6,013 $ 19.54
$23.12 to $26.00 8,091 4.55 Years $ 25.26 8,091 $ 25.26
$26.43 to $29.44 11,149 8.97 Years $ 26.62 2,082 $ 26.78
------------------- ------------- ------------------ ------------------ ------------- -------------
MANDATORY DEFERRED RESTRICTED STOCK AWARDS
Pursuant to the 2001 Incentive Compensation Plan, employees have been
awarded mandatory deferred Occidental restricted common stock, with the right to
receive shares vesting between 3 and 5 years, or earlier under certain
conditions. The mandatory deferred restricted shares are not issued until the
end of the deferral period, but employees receive dividend equivalents on the
deferred shares. The related expense is amortized over the vesting period.
Vested shares are included in both basic and diluted shares outstanding, while
unvested shares are only included in diluted shares outstanding. In 2002, rights
to receive 923,224 shares were awarded at a weighted-average grant-date value of
$26.73.
RESTRICTED STOCK AWARDS
Pursuant to the 2001 Incentive Compensation Plan and the 1995 Incentive
Stock Plan, certain executives have been awarded Occidental restricted common
stock at the par value of $.20 per share, with such shares vesting after three
or four years, respectively, or earlier under certain conditions. The related
expense is amortized over the vesting period. Restricted shares are issued when
granted, but are subject to recall if certain conditions are not satisfied.
Unvested shares are included in diluted shares outstanding. In 2002, 3,784
shares were awarded at a weighted-average grant date value of $25.99; in 2001,