SANTOS BOSS’ $6M INCENTIVE
SANTOS has dangled a $6m carrot to convince boss Kevin Gallagher to stay with the oil and gas company for at least the next five years which rules him out of the race to be the new chief at rival Woodside.
The Santos board announced it would pay Mr Gallagher a “once-off growth projects incentive” to deliver the oil and gas giant’s major projects to 2025 including the recently-approved Northern Territory $4.7bn Barossa gas project.
Mr Gallagher has committed to continuing to drive the delivery of Santos growth strategy, the transition to a leading clean fuels business and to achieve its net-zero emissions targets.
Two weeks ago Mr Gallagher was in Darwin to announce the Barossa project to supply replacement gas for the Darwin LNG plant saying it will create 600 jobs throughout the construction phase and secure 350 Territory jobs for the next 20 years at the Darwin plant.
And Mr Gallagher pledged Santos wanted all staff working in Darwin to be living in Darwin.
The Santos board said since joining Santos in February 2016, Mr Gallagher has led a significant turnaround and the company is now a sustainable and resilient business generating significant free cash flow.
The board said Santos’ share price has more than doubled during Mr Gallagher’s tenure, generating a total shareholder return of 159 per cent including dividends, compared to 83 per cent for the ASX 200 Index and 37 per cent for the ASX Energy Index.
Major growth projects include Barossa, Dorado and Moomba carbon capture and storage. Santos is also leading the energy transition to cleaner fuels and has a clear road map to achieve its target of net-zero emissions by 2040.
Santos chairman Keith Spence said Mr Gallagher was well-recognised as one of Australia’s leading chief executives with a proven track record of delivering value for shareholders.
“Kevin is critical to the successful delivery of the company’s strategy, major growth projects and driving the energy transition over the next five years,” Mr Spence said.
Mr Gallagher has committed to continuing to drive the delivery of Santos’ growth strategy, the transition to a leading clean fuels business and to achieve its net-zero emissions targets.
Further details on the incentive will be provided at Santos’ 2021 Annual General Meeting to be held on Thursday. Santos will seek shareholder approval for the issue of shares to satisfy vested awards at the 2022 Annual General Meeting.