Shell awards 8% bonus following record profits

Shell UK reports 18% mean gender and 8.5% ethnicity pay gapsEnergy organisation Shell has given its workers a one-off 8% bonus in order to reflect its financial success and record profits from high oil and gas prices.

Most of the 82,000 members of staff the business employs worldwide will receive the payment, but top executives will not be included.

Shell reported second quarter profits of £9 billion last week due to higher oil and gas prices, and will return billions of dollars to its shareholders following the publication of its quarterly financial results last month. The award was not a response to the rising cost-of-living.

Rival firm BP also reported its biggest quarterly profit for 14 years, with underlying profits of £6.9 billion.

A Shell spokesperson said: “In recognition of the contribution our people have made to Shell’s strong operational performance against a recent challenging backdrop, our executive committee has decided to make a special recognition award of 8% of salary to all eligible staff across the world. The award enables those employees to share in our current operational and financial success, it is not a response to inflation or cost-of-living challenges.”

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Forecasters have predicted that typical household energy bills will reach above £3,600 a year this winter, more than double the cost of an average bill back in October 2021 of £1,400 a year.

In response, the government introduced a package of measures to help people with energy bills, including a £400 discount. It also announced that from 26 May, oil and gas firms would pay an extra 25% on profits made in the UK, however Shell and BP will not need to pay the levy on the majority of their recent profits made between April and June due to when the legislation came into force.