Santos chief executive Kevin Gallagher has been awarded $5 million worth of incentive shares, lifting the value of his total stake in the oil and gas company to a whopping $41 million.
The long-serving boss received the performance rights under the company's long-term incentive plan, which rewards executives for meeting key targets. The latest award comes as Santos continues to benefit from strong energy prices and operational efficiencies.
Shareholding details
Gallagher's total shareholding now stands at approximately 2.3 million Santos shares, valued at around $41 million based on recent trading prices. The $5 million incentive award was granted in the form of performance rights that will vest subject to future performance conditions.
The CEO has been at the helm of Santos since 2016, overseeing a period of significant growth and strategic transformation. Under his leadership, the company has expanded its LNG portfolio and strengthened its balance sheet.
Market reaction
Santos shares have performed strongly over the past year, supported by robust global demand for liquefied natural gas and disciplined cost management. The company's market capitalisation has grown to over $20 billion.
Shareholder advisory groups have generally supported Santos' executive remuneration framework, noting that it aligns CEO pay with long-term shareholder value creation. However, some investor groups continue to scrutinise executive pay levels in the resources sector.
Gallagher's total remuneration for the 2025 financial year is expected to be detailed in the company's upcoming annual report. The incentive shares are part of a broader retention strategy aimed at keeping key executives amid a competitive talent market.
The news of Gallagher's increased stake comes as Santos progresses its flagship Barossa gas project off the coast of Northern Australia, which is expected to underpin future production growth.
