Shell increases executive directors’ pay

Royal Dutch Shell paid its executive directors a total of €13.043 million (£11.23 million) in 2012, up from €10.89 million (£9.37 million) in 2011.

In the Directors’ remuneration report 2012 section of its annual report, the global oil and gas company reported that chief executive officer Peter Voser received total earnings, which included salary, bonus, cash benefits and non-cash benefits, of €4.13 million (£3.55 million) in 2012, down from €4.52 million (£3.89 million) in 2011.

Chief financial officer Simon Henry received total earnings of €2.03 million (£1.75 million) in 2012, down from €2.76 million (£2.38 million) in 2011.

Effective from 1 January 2013, Voser’s salary will be increased 2.5% to €1.64 million (£1.41 million), while Henry’s salary will be increased 4.8% to €985,000 (£847,817).

The executive directors were both granted new long-term incentive (L-tip) awards on 28 February 2013. On 12 March 2013, 175% of their L-tip shares awarded in 2010 vested.

During 2013, the remuneration committee (Remco) will consider share plan design, because the existing plan rules governing long-term incentives will expire in 2015.

Hans Wijers, chairman of the remuneration committee, said: “The Remco has had a number of interactions with shareholders during the year.

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“There was a consensus that the long-term performance of Shell should guide our remuneration policies, along with our commitments to transparency and ongoing shareholder engagement.

“We subscribe to the ambition of the UK government to increase the transparency of remuneration reporting. We therefore look forward to the revised regulations in this area for the 2013 Directors’ remuneration report.”