Santos (ASX:STO) has made progress on its Moomba carbon capture and storage project in South Australia, but its limited pipeline of new energy projects and falling green capital expenditure is troubling, Health Employees Superannuation Trust Australia (HESTA) said Thursday.
The superannuation fund, which is a shareholder of Santos, made the statement following the company's annual general meeting, noting that it voted against both the remuneration report and the grant of share acquisition rights to Santos CEO Kevin Gallagher.
"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," said HESTA CEO Debby Blakey.
HESTA believes the share acquisition rights seem to lack challenge and have the potential to reduce appetite for new energy projects, given their restricted focus.
"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," Blakey said.
Santos did not immediately respond to a request for comment from.