After reporting record profits, oil and energy giant Shell is set to give most of its 82,000 workers a one-off 8% bonus.
The award, said Shell, was a reflection of the company’s financial success; it was not a response to the rising cost of living. Top executives will not receive this particular bonus, the company added.
Fast rising gas and oil prices stemming from Russia’s invasion of Ukraine and supply restrictions have seen Shell report second quarter profits of £9bn last week as BP reported its largest quarterly profit for 14 years, with underlying profits of £6.9bn.
Shell stated that its staff would receive 8% of their salaries as a bonus “in recognition of the contribution our people have made to Shell’s strong operational performance against a recent challenging backdrop”.
It added: “The award enables those employees to share in our current operational and financial success – it is not a response to inflation or cost-of-living challenges,” the company added.
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Shell has also said it would return billions of dollars to its shareholders after posting its quarterly financial results last month.
The bumper profits being reaped by the energy giants have prompted calls for the government to step in and help households and businesses further, with predictions that typical household energy bills will hit more than £3,600 a year this winter. In October 2021, an average bill was £1,400 a year.
This week, it was announced that HSBC had given around 18,000 of its lowest paid employees a £1,500 payment to help with rising living costs in their August pay.
The bank is the latest employer to provide its lowest paid staff with a cost-of-living payment, as financial organisations including Barclays, Natwest and Lloyds have all made similar announcements.
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