Pension fund group Local Authority Pension Fund Forum demands that non-financial issues be linked to Shell directors’ remuneration

Members of pension funds are being urged to vote against the remuneration report of Shell at its AGM on 15 May following the oil giant’s failure to link directors’ management of non-financial issues, such as health and safety, with long-term pay awards.

In the wake of a similar push recently at BP, the £75bn Local Authority Pension Fund Forum has recommended its members, which include some of the largest local councils in the UK, vote against the company’s remuneration report.

The forum believes that Shell should link management of these issues to its long-term incentive plan.

Local Authority Pension Fund Forum chairman Darrell Pulk said: “If companies believe that issues such as climate change, or safety, are critical to their future success, then they need to make this crystal clear in the manner in which they reward their directors.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today and OHW+ - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Phone

This field is for validation purposes and should be left unchanged.

Δ

“Simply linking a small portion of the annual bonus to non-financial targets does not focus executives enough on the longer term instead of the quarterly results treadmill. These are long-term issues, so why not link them to long-term incentives?”