Houston Chronicle: Shell Oil awaits a new leader: U.S. chairman will seek to rebuild company's image: “As part of the Royal Dutch-Shell Group of Companies' continued management shuffle, it is installing a new U.S. country chairman, John Hofmeister…”: “widely credited with hiring Judy Boynton, the former chief financial officer who was tainted in the reserves accounting scandal that inflated Shell's oil and natural gas assets. She was finally dropped this month, albeit with a $1 million severance package. Boynton joined Shell in 2001 after leaving as vice president of Polaroid. A few months later, Polaroid filed for Chapter 11 bankruptcy protection and angry shareholders accused her of manipulating the company's finances to appear better than they actually were.” (ShellNews.net) Posted 17 Jan 05
By LYNN J. COOK
As part of the Royal Dutch-Shell Group of Companies' continued management shuffle, it is installing a new U.S. country chairman, John Hofmeister, on March 1.
Hofmeister, who has been headquartered in The Hague as director of human resources, will move to Houston to head U.S. operations as president of Shell Oil Co. He succeeds Lynn Elsenhans, who was promoted Jan. 1 as part of Shell's efforts to globalize its businesses.
Elsenhans, who served as president of Shell Oil for 18 months, is now executive vice president of manufacturing for Shell's downstream group, which includes refining and chemicals.
Hofmeister and Elsenhans could not be reached for comment.
The human resource executive's appointment is an unusual move for the embattled global energy company that has repeatedly restated its reserves in the last year.
In the past, country chairmen have also led a specific business unit. Elsenhans, for example, was CEO of Shell Oil Products. But Hofmeister will handle corporate affairs and human resources functions while the heads of individual units report to him.
Adding more women to Shell's ranks was one of Hofmeister's main goals when he joined the company seven years ago. At the time, he was quoted in the Dutch press as saying the company's aim was for 20 percent of the top 400 jobs to go to women.
Another goal: implementing a "mature hire" strategy of recruiting from outside Shell instead of just grooming new young graduates.
It's a strategy that hasn't always worked.
Hofmeister is widely credited with hiring Judy Boynton, the former chief financial officer who was tainted in the reserves accounting scandal that inflated Shell's oil and natural gas assets. She was finally dropped this month, albeit with a $1 million severance package.
Boynton joined Shell in 2001 after leaving as vice president of Polaroid.
A few months later, Polaroid filed for Chapter 11 bankruptcy protection and angry shareholders accused her of manipulating the company's finances to appear better than they actually were.
Compared with many of the "lifers" who have spent their entire career inside Shell, Hofmeister is also a relative newcomer. He joined Shell in 1997 from Allied Signal, where he headed human resources.
Unlike his predecessors, including Elsenhans and Rob Routs, who was president of Shell Oil from 2002 to 2003, Hofmeister does not have a technically oriented education and has never helmed a business unit that specially relates to energy. He holds degrees in political science from Kansas State University.
Thanks to the reserve restatements, Shell's standing in the energy community at large is not what it used to be. The company's executive juggling has some industry watchers speculating that Hofmeister's primary duties will include polishing the company's tarnished image in the United States.
Shell spokeswoman Anne Knisely confirmed the idea, saying: "It's important now, given what has transpired in 2004, that Shell do everything that it can to rebuild the confidence of our stakeholders. That's going to be one of John's primary roles."
http://www.chron.com/cs/CDA/ssistory.mpl/business/2993439