FINANCIAL TIMES: Shell's chief executive lands 90% bonus in spite of cuts in reserves: “Jeroen van der Veer, chief executive of Royal Dutch/ Shell, was paid nearly €2.65m (£1.82m) in 2004, a year in which the Anglo/ Dutch oil and gas group had to cut its figures for proved reserves four times”: “The 20-F also revealed that Shell was in settlement discussions with counsel for plaintiffs in legal actions brought under the US Employment Retirement Security Act that it hoped would lead to a resolution. Shareholder class actions are also proceeding, as are separate actions against the company, directors and former directors.” (ShellNews.net) 1 April 05

By Clay Harris

Published: April 1 2005

Jeroen van der Veer, chief executive of Royal Dutch/ Shell, was paid nearly €2.65m (£1.82m) in 2004, a year in which the Anglo/ Dutch oil and gas group had to cut its figures for proved reserves four times.

Like other executive board members, Mr van der Veer received a 90 per cent bonus on his salary at the year end.

In 2003, none of the directors received any bonus. Mr van de Veer's base salary for 2005 has been increased by 15 per cent to €1.5m.

The executive salary details were disclosed in Shell's 2004 20-F filing with the US Securities and Exchange Commission.

The document also showed that a reserves restatement, its fifth in 13 months, announced with fourth-quarter results on February 3, had reduced net earnings for 2004 by $353m to $18.26bn (£9.72bn). At the year end, Shell's proved reserves were 11.9bn barrels of oil equivalent.

According to the 20-F, Shell's reserve replacement ratio for 2004 was in the middle of the range it indicated in February.

Excluding the effect of divestments and year-end pricing, the ratio was 49 per cent, compared with its estimate of 45 to 55 per cent. Including the effect of those factors, the ratio was 19 per cent, against a range of 15 to 25 per cent.

Shell repeated its target of achieving a 100 per cent replacement ratio over the 2004-08 period.

The 20-F also revealed that Shell was in settlement discussions with counsel for plaintiffs in legal actions brought under the US Employment Retirement Security Act that it hoped would lead to a resolution.

Shareholder class actions are also proceeding, as are separate actions against the company, directors and former directors.

Linda Cook, promoted to executive director for gas and power, started on a basic salary of €810,000. Peter Voser, the new finance director, started on £545,000.

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