Royal Dutch Shell PLC (LON:RDSA) (LON:RDSB) will come under fire on two fronts at its annual general meeting on Tuesday, with shareholders set to challenge both its bosses pay package and the oil giant’s climate change goals.
Like Bob Dudley, his counter-part at FTSE 100-listed peer BP PLC (LON:BP.), Shell’s chief executive Ben Van Beurden will see his multi-million euro salary come under close scrutiny.
The Anglo-Dutch firm’s boss has seen his pay jump to €8.6mln (£7.4mln) for last year, up by €3m from 2015, driven by a €4mln boost to long-term incentives.
Last month BP cut back its executive pay policy to head off a revolt at its AGM last week after an embarrassing revolt against Bob Dudley’s pay in 2016.
READ: BP slashes CEO Bob Dudley’s pay package as it tries to appease shareholders
Shell’s long-term incentives mean that, in theory Van Beurden’s total pay – including maximum bonus wins –could reach €16.88mln, while BP’s board capped Dudley’s highest possible payout at $15.7m.
Shell’s board was spared an investor revolt last year after shareholders voted 85.83% in favour of the 2015 payout.
But this time out, investment group Pensions & Investment Research Consultants (Pirc), which represents around 1% of shareholders, has urged investors to reject both the directors’ pay last year and Shell’s future remuneration policy.
Another shareholder advisory group, ISS did not call on investors to vote against the board but said Shell’s pay policy is “not without concerns for shareholders”.
Vote to set new climate change goals
Meanwhile, shareholders including the Church of England, European pension funds and Dutch activists will also send a signal to Shell’s board tomorrow by voting for it to set new climate change goals.
Shell’s board has asked shareholders to vote against the resolution, which to would require 75% to vote in favour for it to pass.
The oil giant has argued that unilaterally setting targets would harm the company and that the emissions from the burning of its oil and gas were largely covered by country’s individual climate plans.
Cranswick to report strong full year results
Pig and poultry producer Craswick reports its full year results with analysts expecting a solid set of figures.
Sales are expected to rise to £1.2bn from £1.0bn last year and pre-tax profit is forecast to increase by almost £10mln to £73.7mln, supported by a robust performance in Chinese markets.
However, margins are likely to have come under pressure from rising input costs due to a weaker pound.
Numis highlighted that the price of pig meat has remained at high levels, reaching 156.53p per kg for the week ended 29 April, close to 43p/kg above the same week in 2016 and the highest level recorded since early September 2014.
“It is likely that the briefing will feature the usual confident outlook comments and the stress on how heavy capital expenditure remains a prominent feature at group sites,” said Numis analyst Charles Pick, adding that the shares have been “extremely strong” in recent months.
Significant events expected on Tuesday May 23:
AGM: Royal Dutch Shell (LON:RDSB)
Interims: Renew Holdings PLC (LON:RNWH); UDG Healthcare PLC (LON:UDG); Paragon Group of Companies (The) PLC (LON:PAG); Topps Tiles Plc (LON:TPT); MHP (LON:MHPC); Greencore Group PLC (LON:GNC)
Finals: Hibernia REIT Plc (LON:HBRN); Shaftesbury (LON:SHB); Homeserve PLC (LON:HSV); Assura Group Ltd (LON:AGR); De La Rue plc (LON:DLAR); Electrocomponents PLC (LON:ECM); Cranswick plc (LON:CWK); Big Yellow Group Plc (LON:BYG); Severn Trent PLC (LON:SVT); AVEVA Group PLC (LON:AVV)