Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Shell shareholders advised to oppose CEO's pay

Published 05/17/2016, 04:00 PM
Updated 05/17/2016, 04:10 PM
© Reuters. Shell branding is seen at a petrol station in west London

© Reuters. Shell branding is seen at a petrol station in west London

By Ron Bousso

LONDON (Reuters) - Two investor advisory firms have recommended Royal Dutch Shell (L:RDSa) shareholders oppose the CEO's 2015 remuneration, in the latest sign of rising discontent over pay amid falling oil prices.

Shell Chief Executive Ben van Beurden's 2015 remuneration fell 8 percent to 5.135 million euros ($5.63 million) last year, when the company's revenue dropped sharply due to low oil prices.

Proxy adviser Glass Lewis said in a report it remains "concerned by the disconnect between bonus payouts and financial performance, and the bonus scheme structure more generally".

In a separate report, adviser PIRC said "the ratio of CEO pay compared to average employee pay is 37:1, which is unacceptable".

Both firms recommended shareholders oppose the remuneration packages in a vote at Shell's annual general meeting in The Hague next week.

A Shell spokesman said Shell's executive compensation "reflects delivery of our strategy, measured by both short-term and long-term targets. There is a clear alignment between the company's performance and our compensation policies".

Shareholders have become increasingly vocal over executive salaries and bonuses amid slumping earnings and lower commodity prices.

Last month, BP's (L:BP) shareholders voted against Chief Executive Bob Dudley's $20 million pay deal for 2015, a rare investor revolt for such a major company, after it recorded a record annual loss.

Van Beurden's total 2015 package, including pension and tax equalization, was 5.576 million euros, down from 24.198 million euros in the previous year, mainly due to a significant fall in van Beurden's pension which was positively affected in 2014 by promotion to chief executive.

© Reuters. Shell branding is seen at a petrol station in west London

In April last year, Shell launched a bid for smaller rival BG Group (LON:BG) which it completed in February this year for $54 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.