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Santos Limited (ASX: STO), an Australian oil company, has re-elected Keith Spence as its chair despite shareholder unrest over the company's response to climate change issues. According to results from the annual general meeting held on Thursday, a majority of shareholders supported Spence's re-election, with nearly 94% voting in his favor. Spence has been serving as the chair of Santos since 2018.
However, the re-election of Spence comes amidst criticism from activist investor groups regarding the company's handling of climate concerns. Market Forces, an activist investor group, highlighted that the votes for director re-elections at Santos were among the lowest compared to similar results at ASX 50 companies over the past five years. They expressed concerns about the lack of genuine climate risk management by major investors.
Market Forces urged shareholders to vote against Spence's re-election, citing Santos' perceived inadequate response to climate concerns and its focus on oil and gas growth plans, which they deemed as misguided.
Another shareholder group, the Australasian Centre for Corporate Responsibility (ACCR), also voiced their dissent by filing a members' statement against Spence's re-election. They accused him of failing to maximize shareholder value.
Despite these criticisms, Spence's re-election signals ongoing support from investors. However, ACCR cautioned that there is a limit to investor patience. They warned that if Santos fails to address its strategic shortcomings and improve share price performance within the next 12 months, shareholders may not be as forgiving at the next annual general meeting in 2025.
