9% oppose Shell pay report at AGM
Tuesday 22 May 2012
Nearly 10% of shareholder votes rejected Royal Dutch Shell's pay
report at its annual meeting today after the oil giant's boss doubled
his earnings last year.
Chief executive Peter Voser took home 11.7 million euros (£9.5 million) in 2011 - twice the amount he received in 2010 - after lucrative long-term incentive plans paid out.
Some 9.1% of investors, who have seen little change in the company's share price compared with a year earlier, voted against Shell's remuneration report following criticism that executive pay was "excessive".
The group, which reported a 54% jump in profits to 28.6 billion US dollars (£18.1 billion) for 2011, is the latest to be stung by shareholders following discontent over pay at the likes of insurers Prudential and Aviva, as well as Barclays.
Swiss citizen Mr Voser earned 5.2 million euros (£4.2 million) in annual salary and bonus awards in 2011, which was slightly down on the previous year, but his total pay was boosted by 6.5 million euros (£5.2 million) from long-term reward plans.
Shareholder body Pirc advised clients to vote against the company's remuneration report at its annual meeting.
Although salaries have effectively been frozen since 2009, it said they are still at the high end of its UK peer group and will see increases of between 3% and 5% in 2012.
Pirc said it was not convinced that long-term incentive plans introduced in 2009 are challenging, adding "the scheme has been shown to offer generous rewards even for hitting just one of four performance targets".
Shell recently reported an 11% rise in profits to 7.66 billion US dollars (£4.75 billion) for the first three months of 2012, as it cashed in on high energy prices at a time of fuel price misery for British motorists.
As well as high oil prices, with Brent crude at around 120 US dollars a barrel, Shell said the profits haul reflected improvements in its own operating performance and better production volumes.
The so-called "shareholder spring" that has rocked boardrooms over recent weeks has been driven by anger that huge salaries and even bigger bonuses are out of kilter with falling share prices and pressure on profits.
Business Secretary Vince Cable and his department have finished a consultation on binding shareholder votes, which would mean pay deals require the support of 75% of votes, and will update on progress next month.
- 1 Fifty Shades of Grey movie trailer released: First look at Jamie Dornan as Christian Grey
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 50 books for students to read this summer: From Ernest Hemingway to Gillian Flynn
- 4 Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Peaches Geldof cause of death: Socialite had taken fatal dose of heroin after years of addiction, inquest concludes
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...