Woodside chief executive takes $1m pay cut

Woodside Petroleum cut the pay of chief executive officer Peter Coleman by more than $1 million in 2016.

In the Perth-based oil and gas company’s 2016 annual report, it was revealed that Coleman’s 2016 remuneration was about $8.95 million, down from the $9.97 million he received in 2015.

Coleman’s pay cut included his short-term incentives dropping from just over $US2 million ($2.61 million) to $US1.085 million.

The lower salary followed Woodside receiving a so-called “first strike” at the company’s annual general meeting (AGM) last year when almost 28 per cent of shareholders voted against its remuneration report.

A strike occurs if more than 25 per cent of shareholders vote against the report.

Woodside chairman Michael Chaney commented in the annual report: “The human resources and compensation (HR&C) committee chair, Melinda Cilento and I have spent a considerable amount of time engaging with shareholders to understand their concerns around our remuneration policy and practice.

“This year’s report demonstrates our commitment to responding to this feedback. We have made a number of significant changes to remuneration arrangements for the CEO and key management personnel (KMP) that are reflected in the 2016 remuneration outcomes.”

If Woodside receives a second consecutive strike in 2017 its shareholders would have an opportunity to spill the company’s board at this year’s AGM.