Shell boss' pay hits €3.7m

The boss of oil giant Royal Dutch Shell has landed £2.5m (€3.7m) in wages and bonuses after record results for the firm last year, it emerged today.

Chief executive Jeroen van der Veer saw his basic salary jump nearly 10% to £1.15m (€1.7m), and also gained the maximum bonus of 120% of his salary, worth another £1.38m (€2m), based on operational performance and comparisons with other oil companies.

Gains from share options and pension contributions brought Mr van der Veer’s total benefits to €3.7m for the year.

The chief executive has also accrued a total pension pot of £10.8m (€16m).

Mr van der Veer’s fortunes contrast with the retiring head of oil rival BP, Lord Browne, who saw his own bonus slashed by nearly half to £900,000 (€1.3m) last week after a year in which he came under fire for the company’s performance and safety record.

Lord Browne’s overall package including wages and shares fell to £4.57m (€6.7m) last year, albeit still ahead of the Shell boss.

Mr van der Veer’s payout comes as the company also revealed details of an overhaul in its bonus payout system last year, which raises the maximum bonus achievable by the chief executive to 120% of salary from 110%.

His fellow directors will also see their maximum potential bonus payouts rise from 100% to 110% of salary.

The basic salary of Shell directors totalled more than £3.8m (€5.6m) last year, with Shell gas and power head Linda Cook and chief final officer Peter Voser also enjoying 10% rises.

Shell reported record profits of $25.36bn (€19.2bn) for 2006 last month, with profits pushed 21% higher by rising oil prices.

Recent falls in oil prices means analysts are expecting the year ahead to be much tougher, as the company comes under increasing pressure to find new sources of oil.