Global funds send message to Santos before meeting
Australia’s second-largest gas producer is facing a backlash from major international investors representing more than $1.7 billion under management ahead of a major shareholder meeting.
Santos will host its annual meeting in Adelaide on Thursday and will update investors on its progress in the 2025 calendar year, its energy expansion plans and answer questions from the session.
Two of its directors, Janine McArdle and Vickki McFadden, will also seek re-election to the board, raising concerns from investors over the salaries or remuneration of senior executives.
But four of the world’s biggest investors had already voiced opposition to re-electing one or both directors through proxy votes ahead of the meeting.
Opponents of both include US pension funds representing California utilities (CalPERs) and teachers (CalSTRS).
Norway’s largest private asset manager Store brand and Norway KLPThe private pension fund voted against Ms McArdle’s re-election but they both backed Ms McFadden.
“A vote against the incumbent member of the audit committee, Janine Marie McArdle, is warranted because the company is not aligned with investor expectations and commitments to net zero by 2050,” Storebrand said.
Storebrand and KLP also voted against the pay report; Secondly, he wanted to “raise concerns” with a one-off incentive boost to chief executive and chief executive Kevin Gallagher.
KLP argued that this did not appear to be in line with “shareholder experience over the last five years”.
Voting on the compensation decision is advisory and not binding on the board of directors.
Santos made a net profit of $898 million in 2025, an increase of 24 percent compared to the previous year.
Its main activities include the Gladstone (Queensland), Barossa (Timor Sea) and Papua New Guinea LNG projects.
It also operates Australia’s largest onshore oil and gas field development, spanning the borders of northeastern South Australia and southwestern Queensland.
Environmental group Market Forces, which opposes Santos’ gas activities, said the decision to vote four investors indicated “significant investor discontent” and that Australian funds should do the same.
“Major international investors have voted against Santos’ re-election for several years,” Market Forces CEO Will van de Pol said in a statement.
“But Australia’s largest super funds have invested more than $5.5 billion in the oil and gas company and are failing to use all tools to rein in fossil fuel expansion plans that threaten their members’ retirement outcomes.”
Funds include market heavyweights Hesta and Australian Retirement Trust.
Santos’ annual general meeting starts at 10am CST at the Adelaide Convention Centre.
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