Senior executives’ pay cut
Woodside Petroleum has cut more than $1 million from chief executive Peter Coleman’s pay after the company restructured salaries after a first strike against the board.
Mr Coleman’s total remuneration of $US6.71 million ($8.76 million) for the year ending December 31 was nearly $US850,000 less than the previous year’s $US7.55 million.
His short-term incentives nearly halved to $US1.09 million, while short-term benefits and allowances were also sharply lower at $US25,158, according to the company’s annual report released last week.
The cuts came after more than 27 per cent of votes at Woodside’s annual meeting last year went against senior executives’ pay.
A 25 per cent or more vote against the remuneration proposal at April’s meeting risks a board spill, with all directors needing to be reelected. The company said it had restructured executive pay after listening to shareholders’ concerns.
“The human resources and compensation committee chair, Melinda Cilento, and I have spent a considerable amount of time engaging with shareholders to understand their concerns around our remuneration policy and practice,” chairman Michael Chaney said in the report.
“This year’s (remuneration) report demonstrates our commitment to responding to this feedback.”
Among the major changes outlined, Woodside will now pay top executives only a third of short-term incentives in cash, down from two-thirds previously, with the balance allocated in the form of restricted shares.
Long-term incentives will be allocated on the basis of face value, rather than fair value, and will incorporate a net profit after tax hurdle.
Woodside chief executive Peter Coleman’s pay has been cut by more than $1 million.