Woodside Petroleum Ltd|  Remuneration Report 83
CEO and executive KMP KPIs and outcomes for 2018
CEO KPIs and outcomes
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.
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).