Comments on: The scandal of the grotesque rewards that accrue to failed executives http://www.royaldutchshellplc.com/2009/02/28/the-scandal-of-the-grotesque-rewards-that-accrue-to-failed-executives/ News and information on Royal Dutch Shell Plc. Tue, 22 May 2012 20:09:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: MUSAINT http://www.royaldutchshellplc.com/2009/02/28/the-scandal-of-the-grotesque-rewards-that-accrue-to-failed-executives/#comment-160721 MUSAINT Sat, 28 Feb 2009 11:04:59 +0000 http://royaldutchshellplc.com/?p=19272#comment-160721 At least in the papers I have read and TV news I've listened to, the pension gripe (correctly so) has been targetted at banks and similar institutions. I've not heard of Exec. pension complaints about the likes of Shell recently (except perhaps on this website). At least Shell has made large profits, banks have not. Taking another view, your stated ratio for CEO to middle Shell Execs. having gone from 10:1 to 50:1 could reflect the relatively low pay for Shell Execs. a few years ago. I certainly believe that Exxon's CEO was paid way higher than Shell's 10 years ago. I wonder what their ratio's have changed by. Fred the Shred's pension with RBS is indeed outrageous - thank Greedy Gordon's man for allowing this to happen last year. The bottom line is that the board's remuneration often has to be ratified by shareholders who must shoulder some of the blame for these high pensions. Don't get me wrong, if a person performs badly he should not be rewarded with high bonuses and pensions. Unfortunately these are often written into legally binding contracts. It's shareholders who should have a major say / veto upfront, and not retrospectively. At least in the papers I have read and TV news I’ve listened to, the pension gripe (correctly so) has been targetted at banks and similar institutions. I’ve not heard of Exec. pension complaints about the likes of Shell recently (except perhaps on this website). At least Shell has made large profits, banks have not.

Taking another view, your stated ratio for CEO to middle Shell Execs. having gone from 10:1 to 50:1 could reflect the relatively low pay for Shell Execs. a few years ago. I certainly believe that Exxon’s CEO was paid way higher than Shell’s 10 years ago. I wonder what their ratio’s have changed by.

Fred the Shred’s pension with RBS is indeed outrageous – thank Greedy Gordon’s man for allowing this to happen last year.

The bottom line is that the board’s remuneration often has to be ratified by shareholders who must shoulder some of the blame for these high pensions. Don’t get me wrong, if a person performs badly he should not be rewarded with high bonuses and pensions. Unfortunately these are often written into legally binding contracts. It’s shareholders who should have a major say / veto upfront, and not retrospectively.

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