Daily Mail
By RUPERT STEINER
Last updated at 9:58 PM on 15th May 2009
Shell storm: Cooperative Asset Management says Shell ignored its own rules on payouts
One of the City’s most influential institutional investors is leading a rebellion over fat cat bonuses at Royal Dutch Shell and Next.
Co-operative Asset Management is so unhappy it has broken the Square Mile’s code of silence to publicly rebuke Shell.
It plans to try to block the re-election of remuneration committee member-Lord Kerr, to highlight the Anglo-Dutch oil giant’s intransigence over pay.
The Co-op’s corporate governance expert Abigail Herron said: ‘It is now time for members of the remuneration committee to be called to account.’
She said investors are furious Shell has ignored its own bonus rules on executive payouts. To get the share award Shell needed to be one of the world’s top three oil firms. It was fourth last year, but independent directors were given discretion to waive through half the bonus payout anyway –which they did.
Herron is stunned Shell has failed to heed last year’s shareholder rebellion over golden handcuff deals for top directors.
At Next, the retailer has ripped up its performance targets mid-year to trigger-executive bonuses. In a separate announcement, the Co-op said: ‘It is not acceptable to scrap performance targets in difficult times and still provide rewards that are disproportionate to the value created for shareholders.’
Shell said: ‘The remuneration policy aims to reward management for the successful pursuit of strategy.’ Next declined to comment.
More…
- New attack on fat cat pay (thisismoney.co.uk)
- Shell in new storm over bosses’ pay (thisismoney.co.uk)
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