Reuters: Shell sets tougher executive remuneration policies: “Oil major Royal Dutch/Shell has announced more stringent remuneration policies for executives, as it continues to try to win back investor confidence after a reserves scandal last year” (ShellNews.net) 17 March 05
Thu Mar 17, 2005 2:00 PM GMT
LONDON (Reuters) - Oil major Royal Dutch/Shell has announced more stringent remuneration policies for executives, as it continues to try to win back investor confidence after a reserves scandal last year.
Shell, the world's third largest oil group, said on Thursday it had decided to end stock option grants.
The Anglo-Dutch group said it would also change the long-term incentive plans for executive directors and amend their deferred bonus plan.
The amount a director could get from these plans will depend on how Shell fares against its rivals, such as world market leader ExxonMobil, BP, Total and ChevronTexaco).
If Shell comes fourth or fifth in this group in terms of its total shareholder return, executives will not get any bonus shares under the long-term incentive plan and will not qualify for extra shares in the deferred bonus plan.
Shell shocked investors in January 2004 when it slashed its proven oil and gas reserves by 20 percent. The scandal sent its stock plummeting and led to the sacking of top directors.
In an effort to regain investors' confidence, Shell announced it would abolish its Dutch and British dual-company structure in favour of a unified board and listing.
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