Two investor advisory firms have recommended Royal Dutch Shell shareholders oppose the CEO’s, Ben van Beurden, 2015 remuneration.
Chief Executive Officer (CEO) Ben van Beurden’s 2015 compensation has suffered a 8% decline, but still stood at a whopping £4 million last year.
“The ratio of CEO pay compared to average employee pay is 37:1, which is unacceptable”, adviser PIRC said in a report.
Shell ‘Excessive’ £4 Million CEO Pay Opposed
Proxy adviser Glass Lewis said in a report that it remains “concerned by the disconnect between bonus payouts and financial performance and the bonus scheme structure more generally”.
As a result, both firms recommended shareholders oppose the remuneration packages in a vote at Shell’s annual meeting in The Hague next week.
According to a Shell spokesman, the company’s executive compensation “reflects delivery of our strategy, measured by both short-term and long-term targets. There is a clear alignment between the company’s performance and our compensation policies”.
Rise In Shareholders’ Opposition To Executive Pay
The recommendation follows a mounting dissatisfaction over compensation amid the current downfall in crude oil prices. In fact, shareholders are becoming increasingly vocal over executive pay amid a time of a hard all in earnings and commodity prices.
Just last month, BP’s shareholders voted against CEO Bob Dudley’s £15.6 million pay deal for 2015 after the company posted a record annual loss.
Van Beurden’s total package for 2015 was of 5.567 million euros (£4.35 million), including pension and tax equalisation.
The CEO’s compensation suffered a decline, from 24.198 million euros (£18.8 million) in the previous year, mainly due to a significant fall in his pension, positively affected in 2014 by the promotion to CEO.