TheAge.com (Australia): Scandal-hit oil exec gets severance pay: “The Royal Dutch/Shell Group says it gave a STG520,000 ($A1.3 million) severance package to its former finance chief, who quit with two other senior executives last year in the wake of the company's oil reserves scandal.” (ShellNews.net) 8 Jan 05
January 8, 2005 - 6:54AM
The Royal Dutch/Shell Group says it gave a STG520,000 ($A1.3 million) severance package to its former finance chief, who quit with two other senior executives last year in the wake of the company's oil reserves scandal.
Judy Boynton resigned in April, along with former chairman Philip Watts and exploration and production chief Walter van de Vijver, after Shell overstated its proven oil reserves by about 20 per cent.
The group was ordered in September to pay STG82.7 million (about $A200 million) in fines to regulators in Britain and the US after investigations found it violated market rules by cutting its reserves by 4.47 billion barrels. A lawsuit brought by two pension funds that held Shell shares is ongoing.
Proven reserves are the amount of oil and gas a company expects to commercially pump to the surface. They are a crucial measure for investors of an oil company's performance and future value.
Shell said Boynton stayed with the group until December 31 in an advisory capacity only and left by mutual agreement "to pursue other career opportunities".
"We wish her success in her future endeavours," said chief executive Jeroen van der Veer.
Shell said the greater part of Boynton's payment was related to the performance of the company and weighted to the long term.
Boynton retains rights to various existing stock options and restricted share grants. However, Shell said she was not entitled to any of long-term incentive plan award shares set aside in 2003 because performance targets had not been met.
© 2005 AP
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