Shell to freeze salaries for majority of staff amid overhaul

Shell will freeze salaries for most of its employees this year, according to people with knowledge of the matter, as it looks to save cash amid an overhaul of the company.

Shell will freeze salaries for most of its employees this year, according to people with knowledge of the matter, as it looks to save cash amid an overhaul of the company.

Traders will receive annual bonuses, while others won’t receive any.

In a note to staff, Chief Executive Officer Ben van Beurden said that while the company had previously told employees to have low expectations for salary increases, most wouldn’t get a pay rise this year.

Additional Oil & Gas News


Shell is starting one of the biggest reorganisations in its history as it pivots from a century-long structure that prioritized oil and gas production to a greener future. There will be as many as 9,000 job losses over the next two years, with cuts already announced in the Netherlands, the UK and Malaysia. A second round of voluntary redundancies is also underway, Van Beurden said last week.

He reiterated that there would be no bonus payments for anyone in the company, the people said. In July, Chief Financial Officer Jessica Uhl told analysts that halted bonus payouts would save the company about $1 billion.

Shell’s traders, however, will receive bonuses as it’s not tied to payout budgets associated with the company’s performance, people with knowledge of the matter said, asking not to be identified because the information is not public.

The company’s trading unit, among the biggest in the world, had its best performance on record in the second quarter of last year. Van Beurden’s note did not mention bonuses for traders, which can often be hefty.

A Shell spokesperson declined to comment.

The Anglo-Dutch oil giant reported disappointing end-of-year earnings as the impact of the coronavirus continued to hit fuel sales and refining margins. The pressure to turn greener has pushed companies toward clean-energy projects which typically have lower returns than oil. That is forcing them to keep a tight rein on expenditure.

Still, Shell will continue to reward shareholders. In a statement outlining it’s energy transition path on Thursday, the company reiterated its commitment to raise the dividend by about 4% each year. It will also start share buybacks once net debt falls to $65 billion.

Sponsor

Transcourt has been providing leasing and long term rental solutions demanded by the crude oil tanker industry for 20 years. – In both the United States and Canada, crude oil, petroleum products, and natural gas are transported truck trailers. Truck trailers are increasingly used for short distance delivery to fill jobs and projects as the energy continues to expand in Canada and the US. Columbia

Remtec has continued to improve aluminum tanker trailers for the transport of both refined petroleum and crude oil serving the Western Canadian market. The lighter design crude oil tanker trailer reduces emissions providing a greener tanker solution for oil & gas industry.


Get free weekly oil gas permit reports


* These fields are required.

Leave a Reply

Your email address will not be published. Required fields are marked *