Shell bosses miss out on bonuses

Oil giant Shell said today that none of the senior executives ousted in the wake of its reserves crisis would receive annual bonuses for 2003.

The annual reports of the Anglo-Dutch group reveal that former chairman Philip Watts was paid his annual salary of £865,000 (€1.3m) last year.

But the Shell remuneration committee decided Watts should miss out on an annual bonus – typically worth the same as his yearly pay.

They also said he was not entitled to 50% of stock options granted in 2001 as the company had not met performance targets.

And Shell’s failure to outperform rivals such as BP and ChevronTexaco meant he also missed out on shares worth £1.7m (€2.5m) under the group’s incentive plan.

The annual reports were due to be published earlier this year but were delayed in the wake of revelations that it had overbooked its oil and gas stocks.

Shell stunned the market in January by saying its reserves were 20% lower than previously thought and made three further downgrades in the months that followed.

An independent report in April severely censured Watts and head of exploration and production Walter van de Vijver for appearing to know reserves did not meet market rules as far back as 2001.

Mr van der Vijver was paid £842,000 (€1.3m) but received no bonus for his work in 2003 prior to his departure in March, today’s annual reports reveal.

Finance chief Judy Boynton, who became the third boardroom casualty of the furore over the reserves downgrades, picked up her annual salary of £382,000 (€572,000).

The annual reports did not carry details of possible severance payments to the executives who quit as the reserves crisis unfolded. A company spokesman said talks with the individuals are continuing.

Shell also revealed that none of the current management team, including new chairman Jeroen van der Veer, will receive annual bonuses for 2003.