THE LONDON TIMES: $1m payoff for Shell's ousted finance chief: "Ms Boynton joins Sir Philip Watts, Shell’s former chairman, and Walter van de Vijver, the former head of oil exploration, in receiving big payoffs to compensate for their forced resignations.": "Mr van de Vijver received £2.5 million while Sir Philip was paid £1 million. “However, it is likely to infuriate Shell shareholders, who have been angered by the Anglo-Dutch company’s handling of the reserves scandal. One shareholder described Ms Boynton’s payoff as “totally unjustified”, while others said that it was another example of executives being rewarded for failure.”: “Shell has already paid £83 million worth of fines to British and US stock market regulators as a penalty for offences of market abuse and violation of securities laws relating to the scandal. The company could still face lengthy litigation from class action and derivative shareholders’ lawsuits already launched in the US.” (ShellNews.net) 8 Jan 05
By Peter Klinger
January 08, 2005
JUDY BOYNTON, Shell’s former chief financial officer, has received a $1 million (£520,000) payoff after being ousted after last year’s reserves scandal.
The payoff, disclosed yesterday, came on top of $870,000 in annual salary collected by Ms Boynton, who remained a Shell employee until last week, despite being removed from her role in April.
Ms Boynton joins Sir Philip Watts, Shell’s former chairman, and Walter van de Vijver, the former head of oil exploration, in receiving big payoffs to compensate for their forced resignations. Mr van de Vijver received £2.5 million while Sir Philip was paid £1 million.
Shell said yesterday that Ms Boynton’s payoff was in line with her predetermined severance agreement.
However, it is likely to infuriate Shell shareholders, who have been angered by the Anglo-Dutch company’s handling of the reserves scandal.
One shareholder described Ms Boynton’s payoff as “totally unjustified”, while others said that it was another example of executives being rewarded for failure.
The National Association of Pension Funds and the Association of British Insurers (ABI), whose members control more than 20 per cent of all investments on the London Stock Exchange, said that they would examine Ms Boynton’s payoff closely before Shell’s annual meeting in June.
Peter Montagnon, the ABI’s head of investment affairs, said: “In principle we strongly oppose rewards for failure but we have to examine all the circumstances. You can’t make an off-the-cuff judgment in a case like this.”
The reserves scandal, under which Shell was forced to write off 4.4 billion barrels of oil reserves, saw more than £2 billion wiped off the oil giant’s market capitalisation. Sir Philip was seen as the main culprit for misleading the market over the extent of Shell’s reserves. But a subsequent independent report, commissioned by Shell, also criticised the role played by Ms Boynton.
Shell has already paid £83 million worth of fines to British and US stock market regulators as a penalty for offences of market abuse and violation of securities laws relating to the scandal.
The company could still face lengthy litigation from class action and derivative shareholders’ lawsuits already launched in the US.
Shell said yesterday that Ms Boynton had formally left Shell on December 31.
Jeroen van der Veer, chief executive, said: “We appreciate Judy’s contributions over the last nine months as senior financial adviser to the chairman of the committee of managing directors and over the prior three years as chief financial officer. We wish her success in her future endeavours.”
Since being removed from her role as chief financial officer on April 19, Ms Boynton worked on special projects on Shell’s future structure and its overall financial framework.
Shell said that Ms Boynton would miss out on unquantified long-term incentive rewards for 2003 because performance targets had not been met. However, she would retain the right to various existing stock options and restricted share grants.
Ms Boynton, a US citizen, joined Shell in 2001 after resigning from her job as chief financial officer at Polaroid, the US instant film and camera maker. She received almost $295,000 in payoffs from Polaroid, which filed for Chapter 11 bankruptcy protection nine months after her resignation. She became the first female member of Shell’s top-level board. Ms Boynton was replaced by Peter Voser, who worked for Shell from 1982 to 2002 and rejoined the firm in October.
Shell’s shares closed up yesterday 1¼p at 446¼p.
The reserves scandal prompted Shell to review its structure and it now plans to unwind its dual Dutch-British ownership and unify under a single board.
http://business.timesonline.co.uk/article/0,,8209-1430403,00.html
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