In an interview, Shell CEO Ben van Beurden insists he doesnt run an oil company any more. Shell is planning to appeal part of the ruling. Shell announced this week it would stop buying Russian oil or gas, and would close its 500 petrol stations in the country. I stand, as the saying goes, on the shoulders of giants. "In fact, they will be increasing emissions until 2030, and still be producing significant amounts of emissions in 2050," she says. It produces and imports oil and gas which is then sold to energy companies, manufacturers and industries. Demand for oil, the companys core product, dropped almost a third in April, and the price of West Texas Intermediate briefly dipped into negative numbers for the first time. Shell intends to appeal that court judgement. Explore in 3D: The dazzling crown that makes a king. This year, fueled by record profits as oil and gas prices have risen and with Shells staff reduced by job cuts, the company will pay out close to $30 billion in dividends and stock buybacks to shareholders, Mr. Borkhataria estimates. Shell not only rakes in cash from forecourt sales. "In fact, they will be increasing emissions until 2030, and still be producing significant amounts of emissions in 2050," she says. Oil giant Shell on Thursday announced that CEO Ben van Beurden will step down at the end of the year after nearly a decade at the helm. That reliance needs to be managed down over time according to Mr van Beurden otherwise we will see price shocks in the future that will be counterproductive. He will now become one of Europes leading industrialists and, almost automatically, a public figure and a focal point for criticism from environmental activists. His property inWassenaar, the Netherlands, was said to have cost him 3.3million at the time, and reportedly had a lawn like a 'billiard table', a sauna, marble floors and a pond. Jan 09, 2017 - Shell CEO Ben van Beurden on the year just gone, and the year to come. Bernardus Cornelis Adriana Margriet van Beurden climbed up the ladder after joining Shell from university in 1983. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Mr van Beurden says these estimates are speculative and insists Shell is on track, having cut the carbon intensity of its own operations by 17% since 2016. Exclusive news, data and analytics for financial market professionals, Reporting by Ron Bousso Editing by Jason Neely and Mark Potter, As oil output peaks, US Gulf of Mexico makes room for carbon capture, Oil drops 1% as economic growth concerns offset OPEC+ cuts, U.S. April oil exports top forecasts on Chinese demand, Enbridge acquires gas storage facility in British Columbia for $295 million, IMF lauds 'quick and orderly resolution' of First Republic by US regulators, FDIC sees merits of increasing backstop for business accounts, IMF's Georgieva says more vulnerabilities in banking sector may be exposed. Mr van Beurden was speaking at Europe's biggest oil refinery at Pernis near Rotterdam, a facility he plans to transform from refining petrol and diesel, to making biofuels and hydrogen over the next decade. Shell's former chief executive took home 9.7 million in pay and bonuses in 2022, up 53 per cent on the previous year, the firm's annual report has revealed. [1] "I think this energy transition can be done but it will require a lot of orchestration and a lot of faith of society that it can be done. Anyone can read what you share. He also oversaw Shell's commitment to. Analysts said the appointment of Mr. Sawan, a dual citizen of Lebanon and Canada who grew up in Dubai, was unlikely to herald revolution at Shell. We want to hear from you. Danya Bazaraa For Mailonline Im also very much aware of the difficulty to explain how this is actually a global problem, and a problem that has come about by policy decisions that have been taken.. The BBC is not responsible for the content of external sites. The sale totalled 3.876 million pounds, according to the filing. Ben van Beurden has served as Shells chief executive since 2014. has also been in the forefront among oil industry chief executives, suffered a bitter blow last year when a court, Afterward, Mr. van Beurden led a move of the companys, less than a year ago, Third Point, a major hedge fund. Van Beurden said last week: Our decision to exit is one we take with conviction. However, in his foreword to the annual report he described the exit as in line with government guidance, referring to the heavy pressure thought to be exerted by the UK government as it sought to isolate Russias economy. "Ben can look back with great pride on an. If you have a pension you are almost certainly a part owner of Shell, BP and other oil and gas companies. Others point out that if Shell itself were to sell its oil and gas business, those assets would be hoovered up by companies that might be less transparent and less inclined to make the effort to decarbonise. Talking exclusively to the BBC, he said the company's plans for greener energy could only be funded by oil and gas. "Even if you're very generous, and assume they get all the amounts of carbon capture and storage and offsets that they need, they might just miss their 2030 targets, and they will not be able to deliver on 2050. What will climate change look like for you? It's much better to engage with companies and use your influence as a shareholder. Non-governmental organisation Global Witness said former Shell boss Ben van Beurden's pay package for 2022 was 294 times the UK's median salary. UK firms forced to show how they will hit net zero, More than 20,000 Russians dead in Bakhmut, US says, France May Day protests leave dozens of police injured, Fighter jets are roaring over my home in Sudan. Shell, Europes largest oil company, said on Thursday that Ben van Beurden, who has served as chief executive since 2014, would step down at the end of the year. Mr. van Beurden has also been in the forefront among oil industry chief executives in acknowledging the role that burning fossil fuels plays in climate change. Ben van Beurden was paid 57 times more than median Shell worker, according to oil firms annual report. Fat cat Ben van Beurdens company made 9.5billion profit in the past three months alone more than double the same period last year on the back of Russias invasion of Ukraine. By Stanley Reed. Mr van Beurden says the decision on the Cambo oilfield is ultimately one for government but says it makes no sense to substitute UK resources for foreign imports to satisfy domestic demand. In 2014, a video was shared ofvan Beurden doing the then popular 'ice bucket challenge'. Van Beurden said: Of course, Im very aware of the difficulties and the hardship. Read about our approach to external linking. Van Beurden joined Shell in 1983, after graduating with a master's degree in Chemical Engineering from Delft University of Technology in the Netherlands. The CEO of Shell, Ben Van Beurden receives a salary of $9,963,000, according to Wallmine . The London-listed company said Thursday that Mr. Sawan would assume the position on Jan. 1, when Mr. van Beurden steps down after nine years in the role. Is climate change killing Australian wine? Our Standards: The Thomson Reuters Trust Principles. He is one of the highest-earning executives at the Royal Dutch Shell Plc since the pay rise. Ben van Beurden - Biography | Mercedes-Benz Group > Company > Corporate Governance > Supervisory Board The Hague. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. "If we have to build a hydrogen plant from a wind farm that we build in the North Sea for a billion dollars that is not going to be funded by a hydrogen business - it will be funded by the oil and gas business," he said. In February he sold 190,000 of his shares at an average price of 20.40 per share, raking in another 3.876million. And, as critics warned, the company remains saddled. Shell is also expected to make its best efforts to reduce the emissions of its customers - which make up 90% of Shell's overall carbon footprint. A Shell spokesperson said van Beurden's decision to sell was "a private matter". The International Monetary Fund (IMF) appreciates quick action by U.S. regulators to seize First Republic Bank and find a private buyer, an IMF spokesperson said on Monday. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Get this delivered to your inbox, and more info about our products and services. Explore in 3D: The dazzling crown that makes a king. It has now been confirmed that Sawan will take over. He is also on the board of Mercedes-Benz and said in 2017 he drives a 90,000 S-class hybrid. News provided by The Associated Press. , updated 'It is outrageous that oil and gas bosses are raking in millions in bonuses while families struggle to heat their homes,' he said. Shell sold its Russian retail business in May but it still received a 138million dividend in April from its Russian oil and gas venture, part of Sakhalin Energy, because the consortium is registered in Bermuda. Seen here speaking at an event in Germany in 2013, Sawan has held roles in downstream retail and various commercial projects during his 25-year career at Shell. The petrol stations closures have prompted a $400m writedown on assets. "I'm looking forward to channelling the pioneering spirit and passion of our incredible people to rise to the immense challenges, and grasp the opportunities presented by the energy transition," Sawan said in a statement, adding that it was an honor to follow van Beurden's leadership. The footage showed water being poured over him by his two young daughters from buckets which were reportedly Veuve Clicquot champagne coolers. I have great confidence in Wael as my successor. Ben van Beurden is the CEO of Royal Dutch Shell and his rise to the top position was a shock to many. And less than a year ago, Third Point, a major hedge fund, was calling for Shells breakup. The secret mine that hid the Nazis' stolen treasure. The outgoing CEO oversaw Shell's biggest acquisition in decades with the $53 billion purchase of rival BG Group in 2016, guided the company through a historic collapse in energy demand as a result of the coronavirus pandemic, and faced intensifying investor pressure to slash the firm's greenhouse gas emissions. Commenting on Ben van Beurden, Sir Andrew said: "Ben can look back with great pride on an extraordinary 39-year Shell career, culminating in nine years as an exceptional CEO. Member of the Presidential Committee, the Mediation Committee and the Nomination Committee. The pay package for Shell's CEO jumped by half last year to nearly $12 million, the fossil fuel giant said Thursday, as oil and gas companies made record profits from skyrocketing energy costs that have driven a cost-of-living crisis. Read Ben van Beurden's acceptance speech on his personal journey to purpose here. Reuters reported at the start of September, citing two unnamed sources, that Shell's board succession committee had met several times in recent months to draw up plans for van Beurden's departure and interview potential successors. Shell is a major component of the UK's leading share index. Its in businesses interest to not tip the country into recession. The total pay package of Ben van Beurden, who stood down at the end of last year, rose from 6.3m in 2021 to 9.7m in 2022. See here for a complete list of exchanges and delays. Shares of Shell rose 0.7% during early morning deals in London. Read about our approach to external linking. At a time when Brits are struggling to keep up with rising food, fuel and energy bills, his pay jumped by more than a quarter last year and is 57 times more than the average Shell employee. "If we have to build a hydrogen plant from a wind farm that we build in the North Sea for a billion dollars that is not going to be funded by a hydrogen business - it will be funded by the oil and gas business," he said. All quotes delayed a minimum of 15 minutes. The group's annual report also showed Mr Sawan was appointed on a 1.4 million annual salary, in line with his predecessor, plus a potential bonus worth 125 per cent of salary and long-term shares worth up to a maximum potential of 300 per cent of salary. UK firms forced to show how they will hit net zero, More than 20,000 Russians dead in Bakhmut, US says, France May Day protests leave dozens of police injured, Fighter jets are roaring over my home in Sudan. It plans to spend four times as much on oil and gas development as on renewables next year. First published on March 9, 2023 / 6:21 PM. In 2019, Van Beurdens remuneration had also dropped by 51%. He said: "Why would you say: Let's not get our oil and gas demands from our own resources but let's import from somewhere else, probably with a larger carbon footprint. The Shell chief executive Ben van Beurden's pay rose by a quarter in 2021 to 6m, as the fossil fuel producer benefited from soaring energy prices amid calls for a windfall tax on energy. See here for a complete list of exchanges and delays. Van Beurden's pay includes a 2.6 million-pound bonus and 4.9 million pounds worth of stock, according to the company's annual report. With his wife Stacey, he has three daughters and a son. Former Chief Executive Officer Shell plc. If you have a pension you are almost certainly a part owner of Shell, BP and other oil and gas companies. He added: 'We fully appreciate the difficulties that the cost-of-living crisis is causing many people across the world. A dual Lebanese-Canadian national, Sawan has held roles in downstream retail and various commercial projects during his 25-year career at Shell. And, as critics warned, the company remains saddled with debt from its $53 billion acquisition of BG Group in 2015. articles a month for anyone to read, even non-subscribers. | Learn more about Ben van Beurden's work experience, education, connections & more by visiting their profile on LinkedIn As the recent energy crisis brutally exposed, the UK along with the rest of the world is still hugely reliant on fossil fuel. Data is a real-time snapshot *Data is delayed at least 15 minutes. Before Reuters, Ron reported on equity markets in New York in the aftermath of the 2008 financial crisis after covering conflict and diplomacy in the Middle East for AFP out of Israel. But MP Darren Jones whose Business, Industrial, Energy and Strategy select committee held an inquiry into the energy market insisted: They havent made this money because they are brilliant. Van Beurden whose full name is Bernardus Cornelis Adriana Margriet van Beurden previously lived in West London with his Australian wife Stacey and his four children. Romaine Bostick breaks down the day's top stories and trading action leading into the close. Shell said van Beurden would continue to work as an advisor to the Board through to June 30 next year, after which he will leave the company. ICE Limitations. Shell paused Van Beurdens annual bonus during the first year of the pandemic. Chief Executive Officer Ben van Beurden responded by slashing spending and cutting Shell's dividend for the first time since World War II. Van Beurdens pay rise, to 7.4m (6.1m) in 2021 from 5.8m (4.9m) the year before, came amid widespread calls, including from the Labour party, for booming energy companies to pay a windfall tax on profits as people in Britain and beyond struggle with a cost-of-living crisis. He climbed the ladder of success slowly; in 1996 he was Malaysia's LNG's general manager operations before becoming the Vice President . Legal Statement. The stock price is up more than 40% year-to-date. 'Rishi Sunak's refusal to properly tax these eye-watering bonuses and record profits is mind boggling and shows how out of touch he is. The boss of oil giant Shell has insisted it can transition to net zero by 2050, but it will need the cash from its oil and gas business to pay for it. Van Beurden got a roughly 25 percent pay bump last year, making $8.2 million as people around the world paid more for fuel from which Shell is making record profits. VideoThe secret mine that hid the Nazis' stolen treasure, LGBT troops take love for Eurovision to front line, Why an Indian comedian is challenging fake news rules. Van Beurden was paid 57 times more than the median Shell worker in 2021, according to the companys annual report. Shell or someone else will supply it. Mr. van Beurden suffered a bitter blow last year when a court in the Netherlands, then Shells home country, ordered it to move much faster on reducing emissions. All rights reserved. Chief Executive Officer Ben van Beurden responded by slashing spending and cutting Shells dividend for the first time since World War II. "I think this energy transition can be done but it will require a lot of orchestration and a lot of faith of society that it can be done. Mr van Beurden says these estimates are speculative and insists Shell is on track, having cut the carbon intensity of its own operations by 17% since 2016. Consumers, on the other hand, are fuming about paying high prices at the pump and to heat their homes as energy costs have soared in the wake of Russias invasion of Ukraine. Shell is a major component of the UK's leading share index. Read more: British Gas owner's profits soar to 3.3BILLION. "You can't divest from the world. Ben van Beurden's pay jumped from 6.3 million in 2021, with the 2022 figure including a 2.6 million annual bonus and a 4.9 million long-term shares award on top of his 1.4 million annual . Shell wants to develop new oilfields including Cambo in the North Sea which it hopes will produce 170 million barrels of oil. But oil and gas is not just a legacy business. That reliance needs to be managed down over time according to Mr van Beurden otherwise we will see price shocks in the future that will be counterproductive. He will be succeeded by Wael Sawan, who currently heads a unit that includes the companys lucrative liquefied natural gas business and its investments in clean energy, including wind and solar power. Businesses that truly want to serve society should be happy to contribute a slightly higher rate of tax at a time when they are having a bonanza year, through pure good luck rather than their own hard work or innovation, while society as a whole is struggling with rising costs, stagnating wages and further economic turmoil.. "At this point in time [the cash] comes from our legacy business," he said. Ben's career in Shell spans both Upstream and Downstream activities. Mr van Beurden was speaking at Europe's biggest oil refinery at Pernis near Rotterdam, a facility he plans to transform from refining petrol and diesel, to making biofuels and hydrogen over the. She added: 'It's a sign of just how broken our energy system is that Shell and other fossil fuel companies have made record-breaking profits from an energy crisis that's forcing families to choose between heating their homes and putting food on the table. Talking exclusively to the BBC, he said the . See here for a complete list of exchanges and delays. It comes after the oil giant posted a record 84.3 billion US dollar (71.1 billion) profit for 2022 as it benefited from soaring energy prices, branded as 'obscene' at the time amid heavy criticism over the amount of tax paid by the group. The Sun asked him how he could justify this the day after Brits learned energy bills could hit almost 4,000 next year. Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk, Original reporting and incisive analysis, direct from the Guardian every morning, 2023 Guardian News & Media Limited or its affiliated companies. Read the speech 'Embracing Evolution' here. During much of his time as chief executive, Mr. van Beurden courted Russia and, especially, Gazprom, the state-controlled gas exporter. Alice Harrison, fossil fuels campaign leader at Global Witness, said: 'Shell's CEO earned in one year what a typical UK worker would earn in six lifetimes.'. 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Shell wants to develop new oilfields including Cambo in the North Sea which it hopes will produce 170 million barrels of oil. The company awarded Van Beurden 5.4m in bonuses and long-term incentive payments, on top of his 2m fixed pay. Wael Sawan, currently Shell's director of integrated gas, renewables and energy solutions, will become its next chief executive on Jan. 1. After Russia invaded Ukraine this year, he was quick, though, to begin severing those ties, including a valuable natural gas export joint venture on Sakhalin Island in the Russian Far East. Did this woman die because her genitals were cut? 2023 CNBC LLC. As he prepares to step down at the end of the year, he reflects on his career, and offers some parting thoughts. Ben van Beurden dismissed splitting its legacy oil and gas business from its renewables investment, a move urged by activist shareholder Third Point. Campaigners found he earned in one year the amount a typical UK worker would earn in six lifetimes - and that his 2022 pay package was294 times a Briton's average salary. After graduating from Delft University with a degree in chemical engineering, Ben joined Shell in 1983. We are no longer accepting comments on this article. As the recent energy crisis brutally exposed, the UK along with the rest of the world is still hugely reliant on fossil fuel. Fat cat Ben van Beurden's company made 9.5billion profit in the past three months alone more than double the same period last year on the back of Russia's invasion of Ukraine. According to The Guardian, Shell's CEO pays more than doubles to 17.2m. He added: The main driver of inflation has been high energy bills. Mr van Beurden was replaced by Wael Sawan, Shell's former head of gas and renewables, at the beginning of 2023. Video, The secret mine that hid the Nazis' stolen treasure, Why the COP26 climate summit is important. All quotes delayed a minimum of 15 minutes. Most populous nation: Should India rejoice or panic? Mr. van Beurden also took flak during the pandemic for slashing Shells dividend for the first time since World War II, as oil and gas prices plummeted. The unprecedented hit to the energy sector last year due to the pandemic, which briefly knocked benchmark U.S. oil prices into negative territory, forced Shell to cut its dividend for the first time since World War Two. He is well versed in the petroleum-rich Middle East, and formerly ran Shells business in Qatar. He is a smart, principled and dynamic leader, who I know will continue to serve Shell with conviction and dedication," he added. "It has been a privilege and an honour to have served Shell for nearly four decades and to lead the company for the past nine years," van Beurden said. Mr. Sawan is well respected by the investor community, and the shift is likely to be more of a continuation of strategy set under Mr. van Beurden, said Biraj Borkhataria, an analyst at RBC Capital Markets, an investment bank, in a note to clients. As powerful as Shell is, its customers may be more powerful. 'Whether it is executive bonuses or soaring profits, the money being made out of Putin's illegal war should be helping struggling families not oil and gas barons.'. CEO Ben van Beurden on a ruling by the District Court in The Hague that Shell must reduce its carbon emissions even faster than planned. The Shell chief executive Ben van Beurdens pay rose by a quarter in 2021 to 6m, as the fossil fuel producer benefited from soaring energy prices amid calls for a windfall tax on energy companies. Van Beurden stepped down at the end of last year and was replaced by Wael Sawan, who will be paid a base salary of 1.4 million pounds and a bonus that's expected to be bigger than the salary, the report said. Wael Sawan, currently Shell's director of integrated. He attended a state banquet for the Mexican president at Buckingham Palace in 2015, one for the King and Queen of the Netherlands in 2018 and another the next year for US President Donald Trump. There is growing clamour on the part of many pension fund trustees and their scheme members to dump or divest shares in fossil fuel businesses to starve them of capital. Shell's annual report showed that Ben van Beurden's pay jumped from 6.3 million in 2021, with the 2022 figure including a 2.6 million annual bonus and a 4.9 million long-term shares award on top of his 1.4 million annual salary. 4. Shu Ling Liauw from research firm Global Climate Insights has analysed the oil firm's spending plans and estimates that Shell will be producing more emissions by 2030 than it is now as it intends to grow its gas business. How extreme weather is linked to climate change, More than 100 police hurt in French May Day protests, MasterChef Australia host Jock Zonfrillo dies, Explosion derails train in Russian border region, Trump mistrial request denied in NY rape lawsuit, US rock band Aerosmith announce farewell tour, Street piano confiscated as public 'break rules', Russia launches missile attacks on Ukraine, DeSantis-backed board votes to countersue Disney, Father tells how gunman opened fire on Texas home. Video, The secret mine that hid the Nazis' stolen treasure, Why the COP26 climate summit is important. It is completely unfair at a time when the Conservative government is choosing to put people's energy bills up. Shell shares traded at around 20.25 pounds at 1035 GMT on Thursday. Oil giant Shell on Thursday announced that CEO Ben van Beurden will step down at the end of the year after nearly a decade at the helm. Two other candidates to succeed Mr. van Beurden, Maarten Wetselaar, who preceded Mr. Sawan in running the gas and renewables unit, and Jessica Uhl, who was chief financial officer, have left Shell in the past year. Before that he received 10m in 2019 and 20m in 2018, a record if excluding 2014 when pension calculations inflated his reported salary. Tough choices on the road to a lower-carbon world Jan 08, 2016 - Shell CEO Ben van Beurden reflects on business challenges and opportunities, and Shell's role in the transition to a cleaner energy future. That would be a mistake, according the world's largest asset manager Blackrock which looks after 13 trillion dollars in pensions and savings. He added only a miracle could help consumers with their soaring bills. He has been criticized, though, for not moving fast enough to invest in clean energy. If you divest, you lose that influence," said Sandy Boss, head of investment stewardship. Carol Massar and Tim Stenovec host a look back at the best interviews, discussions and more. Mr. van Beurden, 64, whose departure was not a surprise, has steered Shell through a turbulent time and is leaving on a high note at least for investors in oil and gas, who are seeing record profits and payouts.