PERTH (miningweekly.com) – Oil and gas major Santos has awarded CEO and MD Kevin Gallagher a A$6-million incentive to remain at the company’s helm until 2025.
The company on Monday confirmed that the board had agreed to a once-off growth projects incentive to ensure that Gallagher would see through the delivery of Santos’ major growth projects and energy transition strategy.
The move comes as fellow oil and gas producer Woodside is hunting for a replacement for outgoing CEO Peter Coleman, who is set to retire in the second half of this year.
Santos told shareholders that since joining the company in 2016, Gallagher had led a significant turn-around for the ASX-listed energy major, with the company’s share price more than doubling in his tenure.
“Gallagher is critical to the successful delivery of the company’s strategy, major growth projects and driving the energy transition over the next five years,” Santos chairperson Keith Spence said.
Major growth projects include Barossa, Dorado and Moomba carbon capture and storage. Santos is also leading the energy transition to cleaner fuels and has a clear roadmap to achieve its target of net-zero emissions by 2040.
The growth projects incentive will be delivered in the form of Share Acquisition Rights (Sars) with a face value at grant of A$6-million. Vesting of the Sars will be subject to strict performance hurdles related to the successful delivery of major growth projects, the energy transition strategy and continued employment.