Posted by John Donovan: 8 Feb 24
Oh, what do we have here? Shell, the ever-so-charitable and eco-conscious oil behemoth, has just offloaded the pesky pension obligations of 21,500 retirees of Shell USA Inc. in a dazzling $4.9 billion deal with Prudential. Because, you know, ensuring the well-being of people who’ve toiled away their best years for you is such a drag when there are oil wells to drill and environmental regulations to sidestep.
In a move that’s as groundbreaking as discovering oil in your backyard, this transaction has been hailed as the first major pension risk transfer of the year. “Prudential is honored to help continue meeting the retirement security needs of Shell’s retirees,” gushes Alexandra Hyten, head of Prudential’s institutional retirement strategies because nothing says “honor” like taking over payments to retirees from a company that’s probably too busy counting its pollution credits to bother with pension checks.