A major investor revolt is brewing at Woodside Energy after a leading pension fund rejected its new CEO’s multi-million-dollar pay package, raising fresh concerns over executive compensation and climate strategy.

At the company’s annual general meeting, Australian pension fund HESTA voted against the proposed salary structure for newly appointed CEO Liz Westcott, as well as the reappointment of two board directors, News.Az reports, citing Reuters.

The controversial package could reach A$14.8 million ($10.5 million), including:

• A$2.2 million in fixed salary
  A$12.6 million in performance-based incentives
• HESTA argued the package was “not adequately justified” and out of line with industry peers.

“The rise in total incentive opportunity appears excessive,” said HESTA CEO Debby Blakey.

Preliminary voting results show:

Around 18% of shareholders opposed the remuneration report
More than one-third rejected equity incentives tied to the CEO’s pay

The opposition wasn’t limited to Australia. U.S. pension giant CalPERS also voted against the pay package and all board reappointments.

The meeting itself reflected growing tensions. A heavy police presence was reported, and at least one protester was removed by security during the event.

Beyond pay, HESTA signaled deeper concerns about Woodside’s strategy—particularly its continued focus on oil and gas expansion.

The fund warned that the company faces significant climate transition risks and needs a more ambitious shift toward cleaner energy.

As part of its protest vote, HESTA also opposed the re-election of board members involved in sustainability oversight.

Westcott defended the package, pointing to her 30+ years of global experience, but acknowledged shareholder dissatisfaction.

“The board expressed that they were very disappointed in the votes,” she said, noting that external consultants were involved in structuring the compensation.

The backlash highlights a broader global trend: investors are increasingly challenging executive pay and demanding stronger climate accountability.

For Woodside, the message is clear—shareholders are watching closely, and future decisions on pay and strategy may face even tougher scrutiny.

News.Az 

By Aysel Mammadzada