Occidental Petroleum 2005 Annual Report Download - page 185

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shall be established which represents the desired performance for the year. A minimum and maximum level of
performance shall also be established.
Early in each Plan year, Participants shall be advised by their management of the Financial and Personal Objectives
that will be used to determine their Awards for the Plan year, the weighting allocation of the various Financial
Objectives, as well as the weighting allocation between Financial Objectives and Personal Objectives.
AWARD LEVELS
A Target Award shall be established at the beginning of every Plan year for each Participant. Individual Target Award
levels shall reflect variations in job function and scope and the potential impact the Participant has on Company
business objectives. The more senior the position, the greater the portion of total compensation that shall be placed
“at risk”. Award minimums and maximums shall also be established for performance levels below and above target
performance. Award opportunity levels corresponding to the minimum, target and maximum levels of performance may
vary by Division according to business priorities.
AWARDS
Awards under the Plan shall be determined by evaluating performance against Financial Objectives and Personal
Objectives. Actual Awards may be higher or lower than the Target Award. Each Division President, or the most senior
executive in each staff in the case of OPC, shall determine Award recommendations with final approval made by the
CEO for all Participants with a base salary between $200,000 and $249,999 and by the Committee for all Participants
with a base salary equal to or greater than $250,000 as well as corporate officers. Base salary as used here refers to
the base salary on which the award determination will be made.
Awards shall generally be paid in a single cash payment during the first quarter following the end of the Plan year.
Awards shall be based on the Participant’s December 31 st base salary for the Plan year. All applicable taxes and
withholdings shall be deducted from Award payments in accordance with federal, state and local regulations. Awards
may be deferred under the Company’s 2005 Deferred Compensation Plan (“DCP”) in accordance with the provisions
of the DCP.
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