Shell to Cut Pay and Bonuses

15 February 2010 (Last Updated February 15th, 2010 18:30)

Royal Dutch Shell said it is overhauling its pay practices for top management, including pay freezes and limits on bonuses, following a shareholder revolt last year. The head of Shell's remuneration committee said salaries for chief executive Peter Voser and chief financial officer Sim

Royal Dutch Shell said it is overhauling its pay practices for top management, including pay freezes and limits on bonuses, following a shareholder revolt last year.

The head of Shell’s remuneration committee said salaries for chief executive Peter Voser and chief financial officer Simon Henry, which are 20% lower than their predecessors’ pay, are being frozen until 2011.

Directors will no longer be allowed to award management bonuses if they fail to meet pre-agreed targets.

Top management received bonuses for 2008, despite not hitting targets, prompting 60% of Shell investors to vote against approving the 2008 remuneration report at the annual general meeting last year.