Before mood shifted, such an investor uprising would have been shrugged off and ignored. These are titans of industry, creating value and enhancing shareholder returns through their brilliant leadership - how dare the proles try to bind the mouths of the kine that tread the grain?Shell placates angry investors by freezing bosses' salaries
By Alistair Dawber, The Independent
Senior executives at Royal Dutch Shell are to have their pay frozen for at least 12 months after shareholders rejected the company's remuneration report last year.
In May, 60 per cent of investors voted against the Anglo-Dutch company's pay proposals for senior managers after the group's shares staged only a feeble recovery following the financial crisis. The energy giant responded yesterday, saying that chief executive Peter Voser and finance director Simon Henry would have their salaries frozen until next year. Both are already paid 20 per cent less than their predecessors...
...As part of the move, directors will not be allowed to pocket management bonuses unless specific, pre-arranged targets are hit. There was a fiery backlash at last year's annual general meeting when investors were told some board members would be paid large bonuses despite Shell missing targets.
Directors also face the prospect of having incentives clawed back for 12 months if performance deteriorates, while Mr Voser will now have to hold shares worth three times his salary. The reforms, which come into place after what Shell described as "extensive discussions" with investors, are designed to avoid a repeat of the ugly scenes at last year's AGM. Remuneration for 2010 will be considered at this year's meeting in May...
The corpies are going to be under assault from regulators, from angry DA's looking to make a name for themselves, from local tax authorities looking to bleed them dry as sales tax revenues continue to collapse and from investors who need a target to lash out against.
Makes one think that smaller, private companies will endure the coming storm a bit better than large public companies.