Daily Mail (UK): Shell hopes to iron out reserves lawsuit: “SHELL is in talks to settle one of the two major US lawsuits filed over last year's reserves scandal. It has begun talks with counsel for US pension funds and is hoping for a successful resolution, which would be a big step towards clearing up uncertainty. (ShellNews.net) 1 April 05

SHELL is in talks to settle one of the two major US lawsuits filed over last year's reserves scandal.

It has begun talks with counsel for US pension funds and is hoping for a successful resolution, which would be a big step towards clearing up uncertainty.

Shell handed out big bonuses to its bosses for 2004 - a year rocked by scandal and resignations. Chief executive Jeroen van der Veer got two pay rises plus three bonuses and awards totalling £3.6m. Other top executives got bonuses amounting to 90pc of their salary, while finance director Peter Voser received a £2m 'golden hello' and pension top-up.

Van der Veer's pay is still less than the £5.6m package awarded to his BP rival Lord Browne. Exploration chief Malcolm Brinded also received a £634,000 bonus. His salary is £705,000 and his pension pot stands at £6.2m.

The disclosures came in documents filed with the US Securities & Exchange Commission, whose reserves rulings triggered last year's crisis.

New figures show Shell replaced just 19pc of its reserves last year, leaving proven reserves, then 19.3bn barrels, down at 11.9bn.

Shell also paid out £6.4m in legal costs for departed executives. Former chairman Sir Philip Watts, even after taking a pension lump sum of £1.6m, still has a pension pot of £12.7m, paying £468,500 a year.

Half of exploration chief Walter van de Vjjver's £2.6m pay-off has been held back 'subject to continuing cooperation with authorities'.

Brian O'Connor

Click here for ShellNews.net HOME PAGE