Woodside Petroleum Ltd| Remuneration Report 77
Woodside Petroleum Ltd.
ACN 004 898 962
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T: +61 8 9348 4000
F: +61 8 9214 2777
www.woodside.com.au
Woodside Petroleum Ltd.
ACN 004 898 962
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T: +61 8 9348 4000
F: +61 8 9214 2777
www.woodside.com.au
14 February 2019
Dear Shareholder
It is my pleasure, on behalf of the Board, to present Woodside’s Remuneration Report for the year ended
31 December 2018.
In March 2018, the Board outlined the new Executive Incentive Scheme (EIS), after completing a comprehensive
review of our executive remuneration arrangements. This report details Woodside’s first application of this new
remuneration structure.
I have appreciated the opportunity to engage with our investors in 2018 on remuneration and the new EIS. The Board
is confident that the scheme is tailored to Woodside’s corporate strategy, aligns with shareholder interests and allows
Woodside to attract and retain the executive talent required to deliver on Woodside’s growth aspirations.
It is structured to have a significantly greater reliance on equity to reward executives and for the first time, we have
introduced minimum shareholding requirements for executive key management personnel. The Board has also decided
to increase the minimum shareholding requirements for non-executive directors. These changes reflect the long-term
focus of our executives and further promote alignment with shareholders.
Executive awards under the scheme will be based upon two equally weighted components – individual and corporate
performance. In 2018, Woodside delivered positive performance across all operational assets and progressed a
number of projects and growth opportunities. The majority of the business plan priorities were met and Woodside is
well positioned to deliver our strategy across all three growth horizons. Individual executive performance was a critical
contributor to this positive corporate performance.
The Board understands and welcomes our shareholders’ expectation that the Board robustly and independently
assesses executive and corporate performance in determining awards. An important component of this assessment is
reconciling fairly shareholder experience with the award outcome.
We have sought to continue to provide greater detail around the factors and metrics that the Board has considered
in determining remuneration outcomes for 2018. The challenge is to do so in a way that provides clarity without
compromising commercially sensitive information. We trust shareholders share our view that we are striking a good
balance in our eorts to improve transparency.
Notwithstanding strong overall performance, the Board chose to exercise discretion in adjusting the recommended
scorecard outcome from 8.25 to 7.75 (out of 10) to reflect the decline in safety performance over the first half of the
year and a number of business plan priorities that were not achieved.
Yours sincerely
Richard Goyder AO
Chairman