Worley, the Australian engineering group, has encountered substantial opposition to its remuneration report for the second consecutive year, with 20.42 per cent of votes cast against it. While this falls short of the 25 per cent threshold required for a formal strike, proxy advisory groups have criticised what they perceive as a “misalignment” between executive bonuses and investor returns. Worley provides engineering, procurement, and construction services to the energy, chemicals, and resources sectors. The company operates in numerous countries and focuses on delivering projects and services across the asset lifecycle.
Worley’s total shareholder return experienced a decline of nearly 10 per cent in fiscal year 2025, while dividend payouts have remained stagnant for the past five years. During the annual general meeting, Chairman John Grill defended the executive compensation, asserting that Worley executives were rewarded “appropriately.” He also noted that the share price was influenced by “factors outside our control”.
Gary Barton, a monitor from the Australian Shareholders Association, raised questions regarding the value of Worley’s $4.6 billion acquisition of the US-based Jacobs Engineering business in 2018. Barton highlighted that the stock price was above $20 at the time of the acquisition, and executives received $680,000 in special cash bonuses for completing the deal.
Worley’s stock closed at $13 on Thursday, reflecting a decline of almost 5 per cent for the day. This ongoing shareholder concern over executive pay and company performance could place increased pressure on Worley’s management in the coming year to demonstrate improved financial results and align executive compensation more closely with shareholder interests.
