Se­nior ex­ec­u­tives’ pay cut

Pilbara News - - News - Prashant Mehra

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.

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