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Golden Handcuffs

Paying for staying: Retention Bonuses

This week, Royal Dutch Shell forced through a proposal to pay bonuses to three executives just to stay in their jobs, even though investors holding almost half its voting shares failed to back the plan. Shell's scheme for the three frontrunners to become chief executive next year is a particularly unappealing example of the genre. There was not enough consultation with shareholders. This reflects badly on the board, whether it realised the hostility that might be provoked or was oblivious to it.

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