Woodside Petroleum Ltd| Remuneration Report 83

CEO and executive KMP KPIs and outcomes for 2018

CEO KPIs and outcomes

FAR

In February 2018, Woodside conducted a review of the CEO's remuneration. This review took into account the changes to the CEO’s

incentive structure alongside the CEO’s individual and company performance together with comparative data against a deﬁned peer

group. This supported the Board's decision to award the CEO an increase of 7.9% in April 2018.

VAR

For 2018, the individual performance of the CEO was reviewed by the Board against ﬁve equally weighted measures. These metrics,

outlined in Table 4, were chosen because successful performance in each area is a key driver of superior shareholder returns.

At the completion of the year, the Board reviews the CEO’s performance for that year. The CEO is given an individual performance

score of between 0 and 1.6. The CEO’s overall IPF for 2018 was 1.29, resulting in an award of 85.8% of maximum. The 2018 award for

the CEO is detailed in Table 6a on page 86.

Table 4 – CEO performance measures

Growth agenda

Objective 2018 outcomes

Assesses the alignment of growth

opportunities to shareholder return;

portfolio balance; the achievement of

challenging business objectives.

Substantial progress achieved against strategic objectives including acquisition of

additional equity in Scarborough; commencing FEED activities for Scarborough, Pluto

expansion and Senegal; negotiating preliminary agreements to process Browse gas at

KGP; commencing Browse concept deﬁnition phase; high grading Myanmar prospects

through successful drilling campaigns; and completing the equity raising providing

funding certainty for growth.

Eective execution

Objective 2018 outcomes

Assesses the maintenance, operation

and proﬁtability of existing assets;

project delivery to achieve budget,

schedule and stated performance;

cost reduction; achievement of health,

safety and community expectations.

Strong operational performance with increased production, reduced unit production

costs and increased gross margin supporting cash ﬂow and increased proﬁt. Production

optimised through major NWS maintenance turnaround executed with no recordable

incidents, high Pluto reliability, completion of GWF 2 project ahead of schedule and

under budget, and Wheatstone producing at above design rates. CO2-e emissions

reductions better than target, TRIR did not meet target but was the second best result on

record and high potential incidents were almost halved.

Enterprise capability

Objective 2018 outcomes

Assesses leadership development;

workforce planning; executive

succession; Indigenous participation

and diversity; eective risk

identiﬁcation and management.

Increased executive stewardship of workforce planning to deliver growth objectives

while maintaining base business. Continued to build executive capability and gender

balance with the appointment of the new Chief Operations Ocer (COO). Overall, female

participation increased to 30.4% which compares favourably to the industry average

of 23.2%. Indigenous participation increased to 3.7%. Continued to advance artiﬁcial

intelligence and data analytic capability while maintaining focus on critical infrastructure,

security and risk management including a focus on opportunities designed to enhance

long term resilience to a lower emissions future (e.g. carbon abatement capability,

hydrogen assessment).