Occidental Petroleum‘s board would like everyone to know that there’s no discord at the top of the company,  reports to the contrary notwithstanding.
The oil producer is expected to say on Monday that its directors unanimously support the plan to find a successor to its chief executive, Stephen I. Chazen. Perhaps more important, the board will say that the process isn’t being guided by Occidental’s outgoing executive chairman, Ray R. Irani.
The company is hoping to lay rest to rumors that it faces a struggle for control, as it tries to lift a sagging stock price. Since Mr. Chazen took over in May 2011, Occidental’s shares have sunk more than 27 percent.
It is also hoping to win support from proxy advisory firms ahead of the company’s annual board elections.
The unusual statement follows a report by The Wall Street Journal last month that the board was divided over plans to replace Mr. Chazen, who is 66. In particular, the article said that earlier this year, Mr. Irani had suggested bringing in a former Occidental executive as chief executive, a move opposed by other directors.
The company announced on Feb. 14 that it planed to find a replacement for Mr. Chazen. It is working with Russell Reynolds Associates, an executive search firm, according to people briefed on the matter.
The debate over Mr. Chazen’s status has been seen by investors as a referendum on the company’s future. Analysts have speculated about whether Occidental may be headed for a breakup, something that Mr. Irani â€" whose eight million shares make him its 16th-biggest investor, according to Bloomberg â€" is said to oppose.
Mr. Irani, 78, stepped down as chief executive two years ago following activist investor pressure over a staggeringly large pay package.
Occidental’s directors will say in Monday’s statement that they debated the move without Mr. Irani present, and unanimously agreed to being the search.
“In regard to recent press articles and inaccurate speculation, the independent directors reiterate that there is no ‘fight at the top,’†the board said in a statement. “There were no schisms, nor philosophical divisions in the directors’ decision.â€
Mr. Irani will reiterate that he intends to fully retire from the oil company as scheduled at the end of 2014.
And Mr. Chazen confirmed that while the move to replace him wasn’t his choice, he will continue to serve as chief executive until his successor is found.
“I did not ask to leave at this time, but I respect the board’s decision to seek a new generation of leadership,†he will say in a statement.
