Shell backers push for plan to replace leader Ben van Beurden after historic cut to payout

Linda J. Dodson

Another major fund manager said that while there was no desire for an immediate rejig, it would be good for shareholders to have more “visibility on senior management and divisional heads” so they could spot potential successors to Mr van Beurden. A detailed future plan is also missing, the source said.

“The dividend cut was the right thing to do, but it was disappointing that there was not as much forward looking vision as we would have liked.

“What will they do when the oil price recovers? What will they prioritise when they have cashflow to spare?”

Investors are also seeking more details of Shell’s push into renewable energy, after it vowed to slash its carbon emissions to net zero by 2050 earlier this year. Mr van Beurden, who has been in the role since January 2014, has said he will try to spare the company’s low carbon arm from major cost cuts.

He warned last week that it was hard to know if oil demand would ever return to levels seen in 2019, adding that energy consumption will likely change forever. Oil prices have suffered a historic crash in recent weeks, dragging Shell’s profits for the first three months of the year down 46pc to $2.9bn.

“Oil companies have traditionally provided investors with a long-term, stable income stream,” said Nick Stansbury, head of commodity research for Legal & General Investment Management.

“As the industry is going through a challenging period, investors will ask whether the oil industry will continue to play this important role in the future, or if cutting the dividends reflects a more structural change.” 

A spokesman for Shell said there would be a strategy update in the second half of the year. 

Source Article

Next Post

Japanese startups focus on fertility issues to help retain female staff

TOKYO — Okayu cared deeply about her job in IT sales — and also about the fertility treatment she was having. Eventually the 30-year-old decided it was impossible to reconcile both and unwilllingly resigned after concluding that her workplace could not accommodate her need to attend the fertility clinic at short notice. “I gave […]

You May Like