Woodside Petroleum reported statutory NPAT of US$26 million for year ended 31 December 2015, down 99% on the pcp, with adjusted NPAT (removing one-off non-cash items of US$1.085 billion) of US$1.126 billion down 57% on the pcp. The short term incentive company scorecard outcome of 1.35 of out 2, reflects a relative TSR ranking in the 2nd quartile (against a bespoke group of 17 oil and gas sector peers and against the ASX 50 - taken as a composite); second highest production level (although production of 92.2 mmboe was down 3% on the pcp), improved safety performance on TRIFR, and met or exceeded majority of 2015 business plan commitments. This translated into a cash STI for the MD/CEO of US$2,007,413 (2/3 of total STI, and 85% of his maximum award, so reflects Board's assessment of his individual performance). The key to understanding this award is the scorecard category of delivery against business commitments: production, asset utilisation, opex, flaring, cost reduction and efficiency improvement programs. Lower revenues and lower profit don't factor into the reward equation.
With a background in human resources, executive search and corporate law, Kym Sheehan brings unique perspectives on corporate governance and meeting resolutions to her work for The Executive Remuneration Reporter. The Executive Remuneration...
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