Bumper pay increase for Shell boss will fuel calls for windfall tax on oil firms
SHELL chief executive Ben van Beurden has seen the value of his total pay rise by more than a quarter after the oil giant achieved bumper profits amid the surge in oil and gas prices last year.
The company’s annual report shows Mr van Beurden earned total remuneration of €7.4m (£6.3m) last year, up around 28 per cent, from €5.8m in the preceding year.
Mr van Beurden was paid a €2.6m bonus for 2021, during which the group increased annual profits to $19.3 billion (££14.3bn) from $4.8bn.
The Dutch executive did not receive a bonus for 2020, following the downturn in the industry triggered by the pandemic.
The details of the pay increase will fuel calls for a windfall tax on the profits made by oil and gas firms.
Millions of consumers in the UK are set to see their energy bills leap from April following sharp increases in the price of gas on international markets last year. Further increases may be on the way.
Gas prices rose to record levels following Russia’s assault on Ukraine. The price of Brent crude hit a 14-year high of $139 per barrel on Tuesday. Brent crude sold for $112.83/bbl yesterday afternoon.
Last month Mr van Beurden said Shell was eyeing potential North Sea gas developments. He insisted a windfall tax could stifle investment in areas such as the North Sea. Shell says it will use the profits it makes from oil and gas production to support the transition to a lower carbon energy system.
Shell announced this week that it will pull out of Russia completely in response to the attack on Ukraine after facing criticism for buying a cargo of Russian crude.
Announcing the decision, Mr van Beurden said: “We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel – despite being made with security of supplies at the forefront of our thinking – was not the right one and we are sorry.”
Shell had said last week that it would divest interests in big oil and gas developments in Russia.
The group’s outgoing chief financial officer Jessica Uhl earned total remuneration of €4.6m last year, up 24% from €3.7m in 2020. She earned a bonus of €1.6m last year but did not receive one in 2020.
Earlier this month Shell said Ms Uhl had decided to stand down on March 31 due to family circumstances following the group’s decision to move its headquarters from the Netherlands to London. She will be succeeded by Sinead Gorman, who is head of finance for Shell’s exploration and production business.