Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Euronext Amsterdam  >  Royal Dutch Shell A    RDSA   GB00B03MLX29

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Shell Shareholders Latest To Warn On Executive Pay

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/22/2012 | 07:26pm CEST

(Updates with details, context, background throughout.)

 
   By Alexis Flynn 
   Of  
 

Royal Dutch Shell PLC (RDSA, RDSB.LN) shareholders showed their ire over high executive pay with 9% of investors rejecting the company's remuneration report at Shell's annual general meeting Tuesday.

While the overwhelming majority of Shell shareholders backed paying Chief Executive Peter Voser EUR11.7 million and former exploration director Malcolm Brinded EUR11.4 million for their 2011 performance, the number opposed rose substantially from last year, when only 2% of investors voted against the remuneration report.

The shot across the board's bows is the latest sign of discontent at how much top corporate managers are being paid. In what observers have dubbed the "shareholder spring," an increasing number of investors have used AGMs to protest what they perceive to be excessive levels of pay.

Just over 90% of Shell shareholders approved the company's pay package following an assembly in which several investors gave a withering assessment of current rates of executive remuneration. Last month, investors in rival BP PLC (BP.LN) sent a similar message at their annual general meeting, with 11% of holders voting down their executive pay package. And amid signs of an emerging trend at resource-producing firms, 67% of Cairn Energy PLC (>> Cairn Energy PLC) shareholders decisively rejected the Scottish oil explorer's pay report last Thursday.

Martin Simons, who said he has been a Shell shareholder for 50 years, bemoaned the Anglo-Dutch firm's top managers getting a 59% pay rise at a time when dividends have remained static. Voser's pay package more than doubled last year, taking into account bonuses and share incentives.

"Pay inflation in these times isn't appropriate. Companies should pay higher dividends instead," said Simons.

However, Shell said the high pay reflected a year of bumper profitability. Shell's 2011 net profit was $29.7 billion, a 47.7% rise from 2010.

A Shell spokesman said: "Shell's remuneration policy firmly links executive compensation with the performance of the company, and the 2011 outcomes reflect what was a positive year for the company."

Some shareholders excoriated the board for paying such a high package to Brinded, who last month stepped down as executive director for exploration and production. One investor described the award as "grossly overgenerous" and demanded to know whether Brinded was ousted by the board or if he left voluntarily, saying that if it were the former, then he shouldn't qualify for a performance bonus.

The accusation was strongly rejected by the head of the remuneration committee, Hans Wijers, who said Brinded's departure and pay package were part of a managed succession process. "We applied the rules according to that plan," said Wijers. "Malcolm's performance was measured as good. He worked until his very last day."

The meeting was also an opportunity for rights and environmental activists with nominal equity to quiz Voser and Chairman Jorma Ollila on issues such as Shell's track record in the Niger Delta and its controversial plans to drill for oil in the Arctic.

Ollila remained deadpan throughout, failing to crack a smile when one activist shareholder claimed to have intercepted a thank-you letter from "Cockroaches Against Humanity" that she said congratulated the company on its role on fast-tracking climate change and with it, the inevitable demise of humankind.

-By Alexis Flynn, Dow Jones Newswires, +44 207 842 9471; [email protected]

Stocks mentioned in the article : Cairn Energy PLC, Cairn Energy PLC
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ROYAL DUTCH SHELL A
02:25p ROYAL DUTCH SHELL A : 29 Intl Companies Invited to Make Bids for Major Iranian O..
02:23p ROYAL DUTCH SHELL A : Petronas okays Shell selling North Sabah PSC stake to Hibi..
05/27 ROYAL DUTCH SHELL A : New oil production starts offshore Brazil
05/27 ROYAL DUTCH SHELL A : Shell announces start of deepwater production at newest FP..
05/26 ROYAL DUTCH SHELL A : U.S. Patents Awarded to Inventors in Illinois (May 26)
05/26 ROYAL DUTCH SHELL A : U.S. Patents Awarded to Inventors in Alabama (May 26)
05/26 ROYAL DUTCH SHELL A : plc - Deep water production begins at newest FPSO in Brazi..
05/26DJROYAL DUTCH SHELL A : Motiva Reports Emissions at Refinery in Port Arthur, Texas
05/25 ROYAL DUTCH SHELL A : Deep water production begins at newest FPSO in Brazil Sant..
05/25 ROYAL DUTCH SHELL A : Wrangle Simmers in Mabanga Case
More news
Sector news : Integrated Oil & Gas
01:10a Gazprom executive to meet EU antitrust chief, may have to improve concessions
05/26DJTOTAL : Reports Emissions at Refinery in Port Arthur, Texas
05/26 NK LUKOIL : Russia's Novak says may discuss adjustments to OPEC deal at monitori..
05/25 Russia says state firms should use IAS profit as base for dividends
05/25 European shares sputter near highs but OPEC disappointment hits oil stocks
More sector news : Integrated Oil & Gas
News from SeekingAlpha
05/26 Shell, ConocoPhillips $6.8B oil sands share selloff risks flooding market
05/26 Petrobras, Shell fire up new FPSO vessel in Brazil pre-salt field
05/26 Buy And Hold These +4% Yielders Forever
05/26 CRESTWOOD : A Current 9.8% Yield And Potential 30% 12-Month Total Return
05/25 OPEC Has Proven One Thing With Its Latest Meeting - Not Much Is Going To Chan..
Advertisement
Financials ($)
Sales 2017 294 434 M
EBIT 2017 21 667 M
Net income 2017 15 700 M
Debt 2017 61 034 M
Yield 2017 6,76%
P/E ratio 2017 14,07
P/E ratio 2018 12,85
EV / Sales 2017 0,97x
EV / Sales 2018 0,88x
Capitalization 225 475 M
More Financials
Chart ROYAL DUTCH SHELL A
Duration : Period :
Royal Dutch Shell A Technical Analysis Chart | RDSA | GB00B03MLX29 | 4-Traders
Full-screen chart
Technical analysis trends ROYAL DUTCH SHELL A
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 31,6 $
Spread / Average Target 16%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Ben van Beurden Chief Executive Officer & Executive Director
Charles Holliday Chairman
Jessica Uhl Chief Financial Officer
Harry Brekelmans Director-Technology & Projects
Gerardus Johannes Wijers Deputy Chairman
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ROYAL DUTCH SHELL A-6.52%226 880
PETROCHINA COMPANY LIM..-1.89%198 670
TOTAL-2.64%132 016
STATOIL ASA-5.49%58 239
ENI SPA-7.50%58 126
NK ROSNEFT' PAO--.--%57 012
More Results