Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Investor Presentation (April 2018)
16 slides from Shell's investor presentation, April 2018
Slide 1: Remuneration April 2018 Shareholder Engagement
Remuneration April 2018 Shareholder Engagement Royal Dutch Shell plc Gerard Kleisterlee Chairman of the Remuneration Committee Royal Dutch Shell April 2018
Slide 2: Definitions & cautionary note
Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Definitions & 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 Strategy How the strategy links to the CEO’s variable pay elements with strategy CEO The vision for thriving in the energy transition is led by Thrive in INDIVIDUAL PERFORMANCE the CEO and embedded in his individual performance targets. the energy transition World-class LONG-TERM World-cla
Slide 4: Energy transition and remuneration for CEO and CFO
Energy Resilient and relevant portfolio positioned long term transition and OPERATIONAL GHG MANAGEMENT FINANCIAL RESILIENCE OF PORTFOLIO TO ENERGY TRANSITION LONG-TERM GHG-MANAGEMENT remuneration for Time CEO and CFO GHG measures focused on areas Bonus - successful delivery of The vision for thrivin
Slide 5: 2017 CEO outcome
Total remuneration including pension 2017 CEO outcome Fixed €1,520,000 [A] remuneration Target bonus: Annual 2017 scorecard Individual performance €3,000,000 [B] €1,490,000 (base salary) bonus result = 1.13 factor = 1.2 (201% of base salary) x 150% = € 2,235,000 Number of LTIP shares €4,021,000 Vest
Slide 6: Historical pay outcomes
Historical Pay Base salary outcomes €’000 Peter Voser on seat 2,500 from July 1 Ben van Beurden 2,000 on seat 2,000 0% +3.3% +3.2% +2.5% +2.1% +2.1% +2.1% 1,500 1,750 1,550 1,600 1,640 1,500 1,400 1,430 1,460 1,490 1,000 500 0 2008 2009*[A] 2010 2011 2012 2013 2014 2015 2016 2017 Annual Bonus Scorec
Slide 7: 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 8: Summary for 2018 AGM Voting
Summary Changes in 2018 Remuneration for 2018 No changes to the Policy AGM Voting The GHG metrics in the 2018 scorecard have evolved and coverage has increased to close to 90% of the operated portfolio emissions, compared to 60% in 2017 No change to opportunity levels for annual bonus and LTIP
Slide 9: Questions & Answers
Questions & Answers Bangkok – Thailand Royal Dutch Shell April 2018
Slide 10: Royal Dutch Shell April 2018
Royal Dutch Shell April 2018
Slide 11: 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 in shares, subject to 20% Sustainable 12.5% Project delivery 3-year hold
Slide 12: 2018 Annual bonus
2018 Annual bonus Rewards the delivery of short-term operational 12.5% LNG liquefaction targets as well as individual 50% 10% 10% GHG contribution to Shell Environment management 12.5% Production 20% 12.5% 5% DS availability Personal safety 30% 10% Safety 12.5% 5% Project delivery Process safety Cas
Slide 13: 2018 Long term incentive plan
2018 Long term incentive plan Rewards longer-term value creation linked 25% 25% TSR to Shell’s strategy FCF CFFO ROACE 25% 25% ROACE + FCF FCF is an absolute metric, others are relative to performance of industry peers (Exxon, Chevron, Total, BP) emphasised in strategy Key drivers for TSR for
Slide 14: Shareholder alignment and longer time horizons
Shareholder 1 year alignment + Annual performance Net shares held for 3 years bonus longer time period horizons 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 [A] 3 year bonus and LTIP holding peri
Slide 15: Single total figure of remuneration
Single total (€ Thousands) Ben van Beurden Jessica Uhl [A] figure of 2017 2016 2017 remuneration Salaries 1,490 1,460 796 for Executive Taxable benefits 30 22 44 Directors Total fixed remuneration 1,520 1,482 840 Annual bonus [B] 3,000 2,400 1,050 LTIP and DBP [C] 4,021 4,381 623 Total variable remu
Slide 16: 2017 Annual Bonus
Result Measures Weight (% of scorecard) Target set Score (0-2) achieved 2017 Cash flow from operating activities ($ billion) [A] 30% 34 36 1.32 Annual Bonus Operational excellence 50% 1.11 Production (kboe/d) 12.5% 3,687 3,664 0.79 LNG liquefaction volumes (mtpa) 12.5% 32.1 33.2 2.00 Refinery and ch
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