Australian LNG player Woodside has worked over its executive incentive structure limiting the cash awards as well as the CEO’s annual incentive reward.
The executive incentive structure was reviewed by the company’s board in a push to make the remuneration structure adaptable and to promote share ownership, Woodside said in a statement.
The new scheme limits the company’s CEO, Peter Coleman’s fixed annual reward to 200 percent for achieving targeted performance and up to a maximum of 300 percent of fixed annual reward for over-achievement of targeted performance.
For executive key management personnel, in the 2018 performance year, the award for achieving targeted performance will be based on 160 percent of fixed annual reward, Woodside said, noting the award can increase for over-achievement of targeted performance, up to a maximum of 256 percent of fixed annual reward.
Under the new incentive structure, executives will transition to the Executive Incentive Scheme (EIS) and the CEO will move to contractual terms that facilitate the new structure.
The scheme limits the awards paid in cash to 12.5 percent while the remainder of awards will be paid in the form of restricted shares, with 60 percent of the award being deferred for a five-year period, Woodside said.