16 April 2026
Attributable to HESTA CEO Debby Blakey:
As a long-term investor on behalf of our members, HESTA continues to engage closely with Santos’ directors and management on the company's long-term strategic direction and climate transition ambition. While we were pleased to see continued progress of Moomba CCS, we are concerned by the limited pipeline of new energy projects and declining green capital expenditure.
The company's short-term incentive scorecard lacks the ambition we expect to see, and this is reflected in our voting decisions. In our view, remuneration outcomes for CEO Kevin Gallagher are not adequately justified given underlying company performance and the breakdown of a third acquisition proposal in seven years, both of which have weighed on shareholder value.
The short-term payout relied on metrics that we don’t believe delivered true stretch. Share acquisition rights also appear to lack challenge, with these rights having the potential to curb appetite for new energy projects due to their narrow focus.
Santos remains one of our watchlist companies. Our engagement will focus on seeking a more credible pipeline of new energy and transition projects, stronger performance hurdles in executive remuneration frameworks, and clear succession planning. These are long-term issues and HESTA will continue to push for progress on behalf of our members.
Voting summary, AGM 2026:
Ends.