Slide 1: Remuneration Q4 2017 Engagement
Remuneration Q4 2017 Engagement Royal Dutch Shell plc Gerard Kleisterlee Chairman of the Remuneration Committee Royal Dutch Shell November, 2017
Slide 2: Definitions & cautionary note
Definitions & Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with t
Slide 3: Alignment with strategy
Alignment with strategy Strategic Alignment: emphasis on free cash flow Inclusion of Greenhouse Gas management measures in bonus scorecard and progress on World-class Leader: value Energy Transition embedded in personal + influence investment performance case 92.3% support for Policy and 93.2%
Slide 4: Energy transition and remuneration
Energy transition Operational excellence and Greenhouse Gas and management in 3 key areas (refineries, chemicals and upstream flaring) included in the 2017 bonus remuneration scorecard GHG measures for the 2018 bonus scorecard have evolved - refining and chemicals metrics retained and scope for
Slide 5: Pay outcomes
Base salary Pay outcomes €’000 2,500 Peter Voser on seat Ben van Beurden +8.1% from July 1 on seat 2,000 +2.5% 0% +3.3% +3.2% +2.1% 1,850 2,000 +2.1% 1,500 1,750 1,550 1,600 1,640 1,500 1,400 1,430 1,460 1,000 500 0 2007 2008 2009* 2010 2011 2012 2013 2014 2015 2016 Pay outcomes €’000 20,000 16,000
Slide 6: Pay levels
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 the relevant market to ensure we attract and retain talent
Slide 7: Upcoming REMCO milestones
Upcoming 28+29 November 2017: Management day REMCO December-March 2018: REMCO determines milestones 2018 salaries + LTIP 2017 bonus March 2018: vesting of the conditional share awards made in 2015 March 2018: Annual report and form 20-F April 2018: Shareholder consultations May 2018:
Slide 8: Questions & Answers
Questions & Answers Royal Dutch Shell November, 2017
Slide 9: Directors' remuneration policy: short term and long term
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 delivered in shares, 20% Sustainable 12.5% Project delivery subject to 3
Slide 10: Annual bonus
2017 Annual bonus Rewards the delivery of short- 12.5% term operational targets as LNG liquefaction 50% well as individual contribution 10% 10% GHG to Shell Environment management 12.5% Production 20% 12.5% 5% DS availability Process safety 30% 10% Safety 12.5% 5% Project delivery Personal safety Ca
Slide 11: Long term incentive plan
Long term 2017 incentive plan Rewards longer-term value creation linked to Shell’s 25% 25% strategy TSR FCF CFFO ROACE 25% 25% FCF is an absolute metric, others are relative to performance of industry peers (Exxon, Chevron, ROACE + FCF emphasised Total, BP) in strategy Key drivers for TSR for
Slide 12: Shareholder alignment + longer time horizons
Shareholder alignment + 1 year Annual longer time bonus performance Net shares held for 3 years horizons period 50% delivered in cash 50% delivered in shares Long Term 3 year Net shares held for 3 years Incentive Plan performance period 100% delivered in shares* Bonus and LTIP holding period aligned
Slide 13: Historical bonus and LTIP outcomes
Historical bonus Annual bonus scorecard outcome and LTIP 2 outcomes 10-year 1.5 average: 1.25 1 0.5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Discretion applied LTIP Vesting 200% 150% Scorecard on average 100% 10-year average: slightly above target 50% 74% of target LTIP vesting on ave
Slide 14: Royal Dutch Shell November, 2017
Royal Dutch Shell November, 2017