The Independent (UK): Overhaul of Shell costs pounds 67m in fees: “Investment banks and other professional advisers have picked up $115m (pounds 63m) in fees from the corporate restructuring of the oil giant Royal Dutch Shell.” (ShellNews.net) 20 May 05

Michael Harrison Business Editor

May 20, 2005

Investment banks and other professional advisers have picked up $115m (pounds 63m) in fees from the corporate restructuring of the oil giant Royal Dutch Shell.

Details of the cost of transforming the Anglo-Dutch group into a single company with a unified board and one chairman and chief executive are contained in listing particulars being sent to shareholders.

The bulk of the pounds 63m in fees has gone to Shell's three investment bank advisers, Citigroup, Rothschild and ABN Amro. Its lawyers " Slaughter & May in the UK, De Brauw in the Netherlands and Cravath in the US " have also picked up large fees, as have its two auditors, KPMG and PriceWaterhouseCoopers.

The 470-page document also confirms that Shell's executive management, led by chief executive Jeroen van der Veer, could share in a bonus pool worth pounds 17m a year if the company outperforms its rivals over the next three years. Mr van der Veer stands to collect pounds 5m alone on top of his annual salary of pounds 1m.

Total fees to non-executives this year will rise to pounds 970,000, including pounds 150,000 for the Dutch chairman Aad Jacobs. Other non-executives will each receive basic remuneration of pounds 70,000 but the deputy chairman and senior independent non-executive director will each get an additional pounds 30,000. Board members will be eligible for pounds 3,000 payments each time they take intercontinental flights to meetings.

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