A shareholder advisory group for Royal Dutch Shell rejected the company’s proposed executive compensation plan, in a defiant show of investor anger over excessive executive salaries, according to the Wall Street Journal. The European oil giant received a powerful message from frustrated activist shareholders that demonstrated their unwillingness to go through with “business as usual.”
The nonbinding shareholder resolution was issued at the oil company’s annual general meeting yesterday at Shell in The Hague, Netherlands. 59.42 percent of shares voting opposed Shell’s compensation proposal, with about 40 percent lending their support.
2008 compensation for Shell executives were high in spite of a year that was tough for energy companies worldwide. Shell CEO Jeroen van der Veer was awarded a total package of almost $11 million, while all company executives received a performance-based bonus package, in spite of the company missing the associated goal of being in the top three among its peers in shareholder returns.
Shell chairman Jorma Ollila said board members “take the outcome of this vote very seriously and [will] reflect carefully upon it,” though given the vote’s advisory status, it is unlikely any changes will be made to past payouts.