Shell could be next victim of anti-pay vote
ROYAL Dutch Shell, which holds its general meeting tomorrow, could be the next victim of the investor revolution that is sweeping through City boardrooms.
Pensions and Investment Research Consultants (Pirc) has urged shareholders to vote against the oil giant’s remuneration report, which more than doubled Shell chief executive Peter Voser’s total pay to £9.4m in 2011.
“Combined remuneration is excessive in the year under review, with the chief executive receiving annual and conditional long-term incentive awards worth 526 per cent of salary,” the Pirc report claims.
It continues: “Moreover, the scheme has been shown to offer generous rewards even for hitting just one of the four performance targets.”
But the Anglo-Dutch oil and gas company 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.”
Shell reported a 54 per cent rise in full year income attributable to shareholders, reaching $30.9bn (£19.6bn) in 2011. Total revenue grew 28 per cent to $484.5bn.
Voser earned a base salary of €1.55m (£1.25m) in 2011, as well as a €3.5m cash bonus. The Shell boss’ total pay package was boosted by a €6.5m payout from long-term incentive rewards and €158,000 worth of benefits, taking the total to €11.7m.
Within the last month, the now-former chief executives of Aviva, AstraZeneca and Trinity Mirror have fallen victim to shareholder revolts over high pay despite poor performance.