Bloomberg reports that Occidental Petroleum Corp. has agreed to pay former chairman Ray Irani $14 million as part of a settlement for his separation from the company.
Irani, whom shareholders ejected from the board in a vote at their annual meeting in May, will continue receiving lifetime security and tax-preparation services estimated at as much as $1.3 million a year. The total pretax cost of the settlement is estimated at $26 million plus as much as $1.3 million in annual costs.
Irani, who joined Occidental Petroleum in 1983, earned more than $45.6 million last year after he gave up the CEO role. Investors rebelled against the board’s surprise decision in February to replace CEO Stephen I. Chazen, concerned that Irani had been a driving force behind the plan.
Irani has maintained that the company effectively terminated him under the terms of his 2008 employment agreement, thereby entitling him to a termination payment and other benefits and perquisites under that agreement.