Shell and Next hit by angry shareholders
SHELL and Next’s Annual General Meetings (AGMs) set the stage for a summer of discontent yesterday, as shareholders voiced concern over their companies’ remuneration policies.
Almost 60 per cent of investors at oil giant Shell voted against the company’s executive pay scheme, while a disgruntled 17 per cent at Next came out against the firm.
At Shell, queues of investors lined up at the Hague, and in London, where the conference was transmitted by video link for UK investors, to express dismay at the remuneration committee.
Shell paid bonuses to its board, despite the company missing previously agreed targets.
They also voiced their objection to the reappointment of Lord Kerr of Kinlochard who, as one shareholder said, “has the misfortune to be the only member (of the remuneration committee) up for re-election.”
Some investors called for an overhaul to Shell’s remuneration policy while a representative of the Dutch Shareholders Association (VEB) called its bonus system “sick.”
Institutional investors also lined up to register their concern. Standard Life, which has not supported a Shell remuneration bill since 2003, said it was “dismayed” at the oil giant.
Shell said it took the vote “very seriously”, and would meet with shareholders to discuss its future pay policies.
But the unusually high vote is unlikely to mean board members will have to repay any money, as it is only advisory.
Outside the AGM, police, protesters and burning torches greeted Shell representatives.
“Shareholders need to start worrying more about Shell’s impact on the planet than the impact of the company’s pension packages on their pockets,” said a campaigner for pressure group Platform.
Shell is due to stand trial in New York next week for human rights abuses.
The rejection of Shell’s remuneration policy, and the protest vote against Next’s, comes as a series of blue-chip companies face an investor backlash over their pay.
BT, RBS and AIG have all been under fire for their bonus schemes.