Woodside shareholders vote ‘first strike’ against executive pay

Australian LNG player Woodside has received a “first strike” from shareholders on the company’s remuneration for senior executives.

Almost 28 percent of votes cast were against the remuneration report at the company’s annual general meeting in Perth on Thursday.

A strike is recorded if 25 percent or more of the votes are cast against the remuneration report.

Woodside chairman Michael Chaney said prior to the vote at his AGM speech that he was “very disappointed” to report that a little over 25 percent of the votes cast will be against the resolution and “Woodside will thus record what is called a first strike”.

“Within Australia, a great majority of shareholders have supported the remuneration report – with about 75 percent of the negative votes coming from shareholders offshore, where other oil and gas companies have had the same experience,” Chaney said.

According to Chaney, “it is a real challenge trying to come up with a remuneration structure that satisfies all shareholders. Some shareholders are passionately in favour of some elements of the system and others passionately against the same elements.”

Woodside’s first-quarter sales revenue dropped 30 percent to US$982 million due to plummeting oil and gas prices, the company reported on Wednesday.

Australian company also recently decided not to move ahead with the multi-billion Browse FLNG project due to the current economic and market environment.

“I can assure shareholders that the Human Resources and Compensation Committee and the Board take the outcome of the vote very seriously and accept it as an indication of concern about our remuneration. We shall now set about discussing the structure with shareholders further and endeavour to understand and, if possible, accommodate their concerns,” Chaney said.

If strikes are recorded two years running, shareholders can vote to spill Woodside’ board at the company’s AGM in 2017.

LNG World News Staff