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The Independent: Van der Veer’s pay cut to £3.7m at Royal Dutch Shell

By Michael Harrison, Business Editor
Published: 15 March 2007

The total pay of Royal Dutch Shell’s chief executive Jeroen van der Veer shrank 7 per cent last year to £3.7m despite the oil giant reporting record profits.

Shell’s annual report and accounts show that a reduction in Mr van der Veer’s pension entitlement cut his overall package by about £275,000 compared with the £3.98m he took home in 2005.

Shell’s executive directors also missed out on a payment from the group’s long-term incentive plan (LTIP) for the second year running.

Lord Browne, the outgoing chief executive of BP, also saw his pay fall sharply last year after a series of setbacks. However, he still received £4.6m – some 25 per cent more than his counterpart at Shell.

Excluding pension payments, Mr van der Veer’s remuneration, rose 6 per cent in 2006 to £2.52m, thanks to an increase in his annual bonus to £1.4m and a 10 per cent rise in basic pay.

But the increase in the transfer value of his pension pot was smaller than the previous year. In 2006, it increased €1.35m to €15.6m entitling Mr van der Veer to an annual pension of just over €1m.

Shell said that as of last July, Mr van der Veer’s total “target” pay would be £5.2m assuming he received all the bonus and LTIP rewards he is eligible for.

However, actual pay will depend on Shell meeting performance targets over a three-year period.

The combined pay of Shell’s five executive directors last year was £12m with Linda Cook, the head of its gas and power division, the second highest-paid board member after Mr van der Veer with a total package worth £2.7m. and its sister non-profit websites,,,,,, and are owned by John Donovan. There is also a Wikipedia feature.

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