Remuneration November 2018 Shareholder Engagement Royal Dutch Shell plc Gerard Kleisterlee Chair of the Remuneration Committee
Agenda Themes for today Our approach to remuneration and its alignment to our strategy 2018 AGM vote on remuneration report Energy transition in remuneration and the 2020 policy review Update on 2018 pay for performance…
Alignment Strategy How the strategy links to the CEOs variable pay elements with strategy CEO The vision for thriving in the energy transition is led by Thrive in INDIVIDUAL the energy PERFORMANCE the CEO and embedded in his…
2018 AGM Directors Remuneration Report voting The Committee was disappointed with the voting outcome on the Directors Remuneration Report at the 2018 AGM given the strong shareholder support for the remuneration policy in 2017. We…
Remuneration Engagements timeline Nov May March May Summer Nov Winter 2018 - May 2016 2017 2018 2018 2018 2018 2018 2019 2020 Shareholder Shareholder Remuneration Shareholder Proxy Shareholder Proxy Ongoing Shareholder engagement…
Current Resilient and relevant portfolio positioned for the long term approach to OPERATIONAL GHG MANAGEMENT FINANCIAL RESILIENCE OF PORTFOLIO TO ENERGY TRANSITION LONG-TERM GHG-MANAGEMENT energy Time transition and GHG measures…
Remuneration Energy transition policy review Thriving in the energy transition is a core part of our strategy and in 2017 we set out our industry leading Net Carbon Footprint (NCF) ambition. We have engaged extensively with…
Remuneration Energy transition policy review Our strategic ambitions are to be a World Class Investment Case, as we Thrive in the Energy Transition, with a Strong Societal Licence to Operate. Achieving our Net Carbon Footprint Ambition…
Remuneration Energy transition policy review What is the appropriate remuneration vehicle at this point in the journey A separate and distinct energy transition related plan allows a different timeframe and a different perspective on…
Remuneration Areas for Review policy May 2020 Energy transition Attract and retain Remuneration vehicle Pay mix Appropriate metric Target levels Time horizon Comparator group Pay for performance Governance Bonus: structure,…
Historical Pay Base salary outcomes 000 Peter Voser on seat from July 1 2,000 Ben van Beurden +3.3% +3.2% +2.5% on seat 0% +2.1% +2.1% +2.5% 1,500 1,750 +2.1% 1,550 1,600 1,640 1,500 1,460 1,490 1,527 1,400 1,430 1,000 500…
2016 LTIP at Total shareholder return [A] Earnings per share growth [B] Q2 2018 Shell Shell BP BP Total Chevron Chevron Total ExxonMobil ExxonMobil 0% 20% 40% 60% 80% 100% 0% 50% 100% 150% 200% 250% 300% Cash flow from…
Pay for Estimated 2018 single figure as Q2 2018 [A] performance potential pay outcome Base salary and benefits Pension Bonus LTIP Daily total shareholder return growth: LTIP 2016 100.0% 80.0% 60.0% 40.0% Strong…
Upcoming 13 December: Board engagement day REMCO December 2018 - March 2019: milestones REMCO determines 2019 salaries + LTIP grant 2018 bonus February/March 2018: vesting of the conditional share awards made in 2016 March 2019:…
Questions & Answers Royal Dutch Shell November 2018 16
Royal Dutch Shell November 2018
Benchmarked against 4 oil majors Directors Fixed and 15 European companies remuneration remuneration policy Short term Short-term operational delivery 30% 50% Operational CFFO 50% cash targets excellence Annual 50% bonus in…
2018 Annual bonus Rewards the delivery of short-term operational 12.5% LNG liquefaction targets as well as individual 50% 10% 10% GHG contribution to Shell Environment management 12.5% Production 20% 12.5% 5% DS availability…
2018 Long term incentive plan Rewards longer-term value creation linked 25% 25% TSR to Shells strategy FCF CFFO growth ROACE growth 25% 25% ROACE + FCF FCF is an absolute metric, others are relative to performance of industry…
Shareholder 1 year alignment + Annual performance Net shares held for 3 years bonus longer time period horizons 50% delivered in cash 50% delivered in shares Long Term 3 year Net shares held for 3 years Incentive Plan…
Total remuneration including pension 2017 CEO outcome Fixed 1,520,000 [A] remuneration Target bonus: Annual 2017 scorecard Individual performance 3,000,000 [B] 1,490,000 (base salary) bonus result = 1.13 factor = 1.2 (201% of…
Single total ( Thousands) Ben van Beurden Jessica Uhl [A] figure of 2017 2016 2017 remuneration Salaries 1,490 1,460 796 for Executive Taxable benefits 30 22 44 Directors Total fixed remuneration 1,520 1,482 840 Annual bonus [B]…
Pay levels Alignment: various pay ratio approaches indicate that Shell is in line with peers and FTSE 30 companies Consistency: jobs at all levels in Shell are benchmarked externally Competitiveness: packages are set in the context of…
Result Measures Weight (% of scorecard) Target set Score (0-2) achieved 2017 Cash flow from operating activities ( billion) [A] 30% 34 36 1.32 Annual Bonus Operational excellence 50% 1.11 Production (kboe/d) 12.5% 3,687 3,664 0.79…
Loading...
