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BBC News: Disgraced Shell bosses lose bonus

BBC News: Disgraced Shell bosses lose bonus

Posted 29 May 04

  

Sir Phillip Watts lost his bonus while the oil reserves row was at its height.

 

Disgraced Shell bosses have lost their bonuses, following the scandal over oil and gas reserves.

 

In its annual report, already delayed by months, the oil giant also states that two of the three directors who were sacked have no right to a pay-off.

 

Shell shocked investors when it announced it had overstated reserves by 20% and has made four downgrades. The decision not to pay bonuses appears to be Shell’s attempt to draw a line under the scandal.

 

Shell’s top people still benefited from pay rises and share options.

 

Sacked

 

There was a pay rise of 13% from 2002 for Sir Phillip Watts, former chairman, who was paid £843,000 ($1.55m) before his sacking in March.

 

Malcolm Brinded, who was elevated to the board in 2002 also received no bonus, but doubled his pay to 800,000 euros.

 

New Chairman, Jeroen van der Veer, also went without a bonus that would have been worth more than 1.2m euros ($1.46m).

 

Two other sacked directors, Judy Boynton and Walter van de Vijver, lost out on their bonuses – worth around £400,000 and £900,000 respectively.

 

Shell, the world’s third largest oil company, has made reserves downgrades on four occasions this year.

 

The report also includes a detailed explanation of its new tighter reserves policy.

 

http://news.bbc.co.uk/2/hi/business/3756187.stm

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