Australian pension fund votes to oppose Woodside CEO's compensation package

HESTA, the Australian pension fund, voted on Thursday against the multi-million dollar pay package for new Woodside Energy CEO Liz Westcott and against the re-appointment of two directors.

At its annual meeting, the energy company asked shareholders to approve "a package" of up to A$14.8m ($10.57m) and to grant equity rights to Westcott after her promotion to top position in March.

At least one protester was marched off the stage by security and police.

A preliminary vote count showed that 18% of shareholders voted against a remuneration review and that more than a third rejected the grant of rights to acquire shares.

HESTA's chief executive Debby Blaky said that the compensation package for Liz Westcott, incoming CEO of HESTA, "is not justified in our opinion."

"The increase in total incentive opportunities appears excessive for an emerging CEO?and out-of-step with its ASX peer."

Woodside stated that Westcott's compensation package consisted of A$2.2m in fixed pay and A$12.6m in variable pay, divided between short- and longterm incentives tied to his performance.

Westcott said at a press briefing after the AGM that the board was "very disappointed" with the vote on remuneration.

She claimed that the company hired external consultants, and her pay package reflected the 30+ years of experience she has gained around the globe. However, it was "really an issue for the board".

Blakey stated that the pension fund with A$100 billion of assets under management was concerned Woodside remained too focused in building its oil and gas portfolio which?carried a heavy climate change risk.

She said that Woodside must adopt a more aggressive approach in order to achieve its energy transition goals.

HESTA voted to not re-elect non-executive director Larry Archibald, and Arnauld Breeuillac who are both members of the Woodside board's sustainability committee.

HESTA held 11.1 million Woodside Shares in its most popular Fund as of end-December.

CalPERS, a U.S. pension fund, voted against both the remuneration and equity reports, as well as all directors running for reelection.

(source: Reuters)