SHAREHOLDERS in Royal Dutch Shell have given strong backing to the oil and gas giant’s latest pay policy for directors.
The policy, which will apply for the next three years, was approved by 92.34 per cent of votes cast at Shell’s annual general meeting at The Hague yesterday, with 7.66 per cent opposed.
It will allow chief executive Ben van Beurden to earn up to €15.7 million (£13.5 million) if he achieves the maximum performance related bonus and share awards.
Mr van Beurden earned total remuneration of €8.6m in 2016.
The report covering directors pay in 2016 was approved by 93.2 per cent of votes cast, with 6.8 per cent opposed.
The company faced criticism at the AGM over its climate change commitments, with shareholders criticising its rejection of emissions targets that would bring it in line with the Paris climate accord.
Mr van Beurden insisted Shell was making progress in lowering its emissions, but that achieving Paris Climate Agreement goals - which aim to limit global warming to below two degrees Celsius from pre-industrial levels - would require broader coordination, including active government support.
He said: “Even though we are a large company, we are a small company in relation to the overall energy system. We are not going to have a quicker transition (to clean energy if we adopt targets).
“The only thing that will happen if we would indeed implement the resolution... is we will see our competitors benefit, and it may actually have an adverse effect on greenhouse gas emissions.”
Shareholder Mark van Baal, who championed the proposal that would have forced Shell to set and publish targets in line with the Paris Climate Agreement, said the relevant resolution gave it full flexibility as to how to set the targets.
Matt Crossman of Rathbone Greenbank Investments, said: ““Resolutions that demand broader emission targets, and increased transparency, are only going to attract increasing support ... until Shell’s board can provide a response that reassures its shareholders, it should be prepared for a bumpy ride.”
Some 6.34 per cent of votes cast favoured the resolution.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here