THE NEW YORK TIMES: Demoted Executive Quits Shell, Taking $1 Million in Severance: “The Royal Dutch/Shell Group said on Friday that Judith Boynton, who was demoted as chief financial officer last year after a sharp write-down in oil reserve estimates, left the company last week with a $1 million severance package.”: “She will…, receive £1.32 million ($2.47 million) in pension, shares and options this year.” (ShellNews.net) 8 Jan 05
By HEATHER TIMMONS
Published: January 8, 2005
LONDON, Jan. 7 - The Royal Dutch/Shell Group said on Friday that Judith Boynton, who was demoted as chief financial officer last year after a sharp write-down in oil reserve estimates, left the company last week with a $1 million severance package.
Ms. Boynton, who had stayed at Shell to work on special projects, left to pursue other opportunities, the company said. Her severance was paid as stipulated in her employment contract, but she will receive no bonus for 2004, or performance-related payments for 2003 or 2004, Shell said. She will, however, receive £1.32 million ($2.47 million) in pension, shares and options this year.
Ms. Boynton, 49, is the third executive to leave Shell after the company announced a year ago that its proven oil and gas reserve estimates were 20 percent lower than previously reported. Sir Philip B. Watts, who was chief executive at the time, and Walter van de Vijver, head of exploration and production, left in March.
Ms. Boynton's pension is worth £513,691 ($959,635), and she will also receive 17,000 Royal Dutch shares that were awarded in 2002 and are now worth £545,534 ($1.01 million). She also departs with options for 140,000 Royal Dutch shares that are currently not worth anything because the shares are trading below the option exercise price, and options for 70,500 Royal Dutch American depository receipts, which will be awarded in three installments. The first installment, worth £259,627 ($485,000), will be paid this year.
Since she stepped down from the top finance job in April, Ms. Boynton has served in an "advisory capacity" at Shell, reporting to the current chief executive, Jeroen van der Veer, the company said Friday. Ms. Boynton has been working on projects related to the group's structure and financial framework, Shell said.
In October, Shell, which is composed of two publicly traded companies, said that it would merge them into one, after investors complained that the dual structure might have contributed to the corporate flaws that led to the reserve write-down.
Ms. Boynton, who joined Shell in 2001 from Polaroid, will not receive previously awarded 2003 incentive plan shares, worth about £500,000 ($934,000) according to Shell's annual report for that year, or any long-term incentive plan shares for 2004. None of Shell's managing directors were awarded a bonus in 2003.
Through a spokesman, Andy Corrigan, Shell also said on Friday that it had resumed pumping 42,000 barrels of oil a day from the Niger Delta in Nigeria, the first production there in a month after local villagers damaged flow stations and pipelines in a dispute over jobs. Shell is Nigeria's largest oil producer, with capacity to pump one million barrels a day from the region.
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