Analyzing Executive Compensation: Woodside Petroleum & Santos Report

This report provides a comparative analysis of executive remuneration practices at Woodside Petroleum and Santos for the fiscal year 2017, focusing on the structure of remuneration committees, allocation of executive pay (fixed remuneration, short-term incentives, and long-term incentives), and the mix of financial and non-financial performance measures used. It evaluates the effectiveness of control systems within the companies and examines the relationship between company performance and executive pay, using metrics like earnings per share and return on equity. The analysis reveals that Woodside Petroleum maintained a remuneration structure aligned with its financial performance, while Santos faced challenges due to negative net income. The report concludes that Woodside Petroleum is in a better position regarding executive performance and remuneration, supported by stronger cash flow generation and overall financial highlights. The report also contrasts Woodside's clear strategy for delivering shareholder returns with Santos's considerations of share price and dividend yield, highlighting differences in their approaches to measuring shareholder returns and setting short-term and long-term project goals.