It plans to spend four times as much on oil and gas development as on renewables next year. London-based Shell paid Ben van Beurden a total of 9.7 million pounds ($11.5 million) in 2022 as annual company profits doubled to an all-time high of $40 billion because Russia's war in Ukraine sent oil and gas prices soaring. If you have a pension you are almost certainly a part owner of Shell, BP and other oil and gas companies. Our Standards: The Thomson Reuters Trust Principles. 06:23 EDT 09 Mar 2023 Im very mindful that is a difficult message to hear, but it is what it is. All Rights Reserved. Shell is planning to appeal part of the ruling. "Even if you're very generous, and assume they get all the amounts of carbon capture and storage and offsets that they need, they might just miss their 2030 targets, and they will not be able to deliver on 2050. Mr van Beurden says the decision on the Cambo oilfield is ultimately one for government but says it makes no sense to substitute UK resources for foreign imports to satisfy domestic demand. Most populous nation: Should India rejoice or panic? CEO Ben van Beurden on a ruling by the District Court in The Hague that Shell must reduce its carbon emissions even faster than planned. and renewable energy unit. But oil and gas is not just a legacy business. "In fact, they will be increasing emissions until 2030, and still be producing significant amounts of emissions in 2050," she says. "I'm looking forward to channelling the pioneering spirit and passion of our incredible people to rise to the immense challenges, and grasp the opportunities presented by the energy transition," Sawan said in a statement, adding that it was an honor to follow van Beurden's leadership. That reliance needs to be managed down over time according to Mr van Beurden otherwise we will see price shocks in the future that will be counterproductive. In 2015, shortly after becoming chief executive, Mr. Beurden led one of the largest industry takeovers in years, the acquisition of BG, a British oil and gas company that was a major player in L.N.G., for $70 billion. To stand here today as Energy Executive of the Year is a true pleasure for me. I have great confidence in Wael as my successor. Van Beurden, 64, joined Shell in 1983 and became CEO of the company in 2014, after serving as director of the firm's refining and chemicals business. The Shell chief executive Ben van Beurden's pay rose by a quarter in 2021 to 6m, as the fossil fuel producer benefited from soaring energy prices amid calls for a windfall tax on energy. "I am very proud of what we have achieved together. "In fact, they will be increasing emissions until 2030, and still be producing significant amounts of emissions in 2050," she says. Activist Lauren MacDonald was also asked to share the stage with the fossil fuel boss . Van Beurden whose full name is Bernardus Cornelis Adriana Margriet van Beurden previously lived in West London with his Australian wife Stacey and his four children. Shell paused Van Beurdens annual bonus during the first year of the pandemic. "At this point in time [the cash] comes from our legacy business," he said. Data is a real-time snapshot *Data is delayed at least 15 minutes. Average weekly earnings for British people rose by 4.3% in the year to December, meaning their real wages fell because of inflation, caused in part by higher energy prices. Luke Hildyard, a director of the High Pay Centre, a campaign group, said: Shells chief executive rakes in millions and half their UK employees make well over 100,000. These greedy billion pound businesses continue to operate without fear of genuine political scrutiny. Former Chief Executive Officer Shell plc. This is why some doubt that Shell can hit either its own targets and those imposed by a Dutch court which require it to halve its own net emissions by 2030 and eliminate them entirely by 2050. Read the speech 'Embracing Evolution' here. This year, fueled by record profits as oil and gas prices have risen and with Shells staff reduced by job cuts, the company will pay out close to $30 billion in dividends and stock buybacks to shareholders, Mr. Borkhataria estimates. Chief Executive Officer Ben van Beurden responded by slashing spending and cutting Shell's dividend for the first time since World War II. Sign up for free newsletters and get more CNBC delivered to your inbox. Van Beurden, who has led Shell since 2014, said last Thursday that "I still believe that our shares are undervalued," after the company reported bumper profits of $19.3 billion in 2021 on the back of high oil and gas prices. Adam Berry | Getty Images News | Getty Images, $53 billion purchase of rival BG Group in 2016. As long as there is demand for fossil fuels. Van Beurden was paid 57 times more than the median Shell worker in 2021, according to the companys annual report. Shell wants to develop new oilfields including Cambo in the North Sea which it hopes will produce 170 million barrels of oil. Ben van Beurden was paid 57 times more than median Shell worker, according to oil firms annual report. Shares of Shell rose 0.7% during early morning deals in London. It has now been confirmed that Sawan will take over. His property inWassenaar, the Netherlands, was said to have cost him 3.3million at the time, and reportedly had a lawn like a 'billiard table', a sauna, marble floors and a pond. I hope the big shareholders can sleep well knowing millions are struggling just to pay to heat their homes or fill their tanks to drive to work and medical appointments.. A Division of NBCUniversal. It produces and imports oil and gas which is then sold to energy companies, manufacturers and industries. That demand can be influenced by government carrot or stick, companies can be squeezed by financiers but consumer behaviour will ultimately determine whether the world can hit net zero by 2050. He has been given an undisclosed relocation and housing allowance and is selling his 5.2million eight-bed villa in Holland. Analysts said the appointment of Mr. Sawan, a dual citizen of Lebanon and Canada who grew up in Dubai, was unlikely to herald revolution at Shell. `, "If you want to destroy the faith by driving up energy prices, by creating shortages or market failures, I think politicians are going to lose societal acceptance that this is actually doable.". 07:50 EDT 09 Mar 2023. Alice Harrison, fossil fuels campaign leader at Global Witness, said: 'Shell's CEO earned in one year what a typical UK worker would earn in six lifetimes.'. There is growing clamour on the part of many pension fund trustees and their scheme members to dump or divest shares in fossil fuel businesses to starve them of capital. 2023 BBC. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Shell said van Beurden would continue to work as an advisor to the Board through to June 30 next year, after which he will leave the company. Shell currently has a global carbon footprint the size of Russia's if you include the emissions from customers using Shell products. Danya Bazaraa For Mailonline. Van Beurden, 64, who has been at Shell for almost four decades, will continue to work in an advisory role to the board until the end of June. In 2014, van Beurden became CEO and moved his Australian wife Stacey and four children to the Hague from their home in West London, which sold for 3million, according to The Mirror. Ladies and gentlemen, Thank you. Explore in 3D: The dazzling crown that makes a king. Its not easy to run an oil major when people suddenly stop needing oil. I stand, as the saying goes, on the shoulders of giants. Wael Sawan, currently Shell's director of integrated gas, renewables and energy solutions, will become its next chief executive on Jan. 1. Anyone can read what you share. He is also on the board of Mercedes-Benz and said in 2017 he drives a 90,000 S-class hybrid. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. And, as critics warned, the company remains saddled with debt from its $53 billion acquisition of BG Group in 2015. articles a month for anyone to read, even non-subscribers. Van Beurden said: Of course, Im very aware of the difficulties and the hardship. He has been named Reporter of the Year in 2014 and 2021 by Reuters. Ron has covered since 2014 the worlds top oil and gas companies, focusing on their efforts to shift into renewables and low carbon energy and the sector's turmoil during the COVID-19 pandemic and following Russia's invasion of Ukraine. Ben van Beurden Bernardus Cornelis Adriana Margriet "Ben" van Beurden (born 23 April 1958) is a Dutch businessman who was the CEO of Shell plc from 2014 to 2022. Born on 23 April 1958, Van Beurden is a Dutch citizen. Mr. van Beurden also took flak during the pandemic for slashing Shells dividend for the first time since World War II, as oil and gas prices plummeted. First published on March 9, 2023 / 6:21 PM. As powerful as Shell is, its customers may be more powerful. Its very short-sighted for them to redistribute their wealth through share-buybacks instead of helping customers.. Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk, Original reporting and incisive analysis, direct from the Guardian every morning, 2023 Guardian News & Media Limited or its affiliated companies. Mr van Beurden was speaking at Europe's biggest oil refinery at Pernis near Rotterdam, a facility he plans to transform from refining petrol and diesel, to making biofuels and hydrogen over the next decade. Mr. van Beurden, 64, whose departure was not a surprise, has steered Shell through a turbulent time and is leaving on a high note at least for investors in oil and gas, who are seeing record profits and payouts. By That reliance needs to be managed down over time according to Mr van Beurden otherwise we will see price shocks in the future that will be counterproductive. Powered and implemented by FactSet. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. But oil and gas is not just a legacy business. He will now become one of Europes leading industrialists and, almost automatically, a public figure and a focal point for criticism from environmental activists. Shu Ling Liauw from research firm Global Climate Insights has analysed the oil firm's spending plans and estimates that Shell will be producing more emissions by 2030 than it is now as it intends to grow its gas business. Shell, Europes largest oil company, said on Thursday that Ben van Beurden, who has served as chief executive since 2014, would step down at the end of the year. Is climate change killing Australian wine? The BBC is not responsible for the content of external sites. The outgoing CEO oversaw Shell's biggest acquisition in decades with the $53 billion purchase of rival BG Group in 2016, guided the company through a historic collapse in energy demand as a result of the coronavirus pandemic, and faced intensifying investor pressure to slash the firm's greenhouse gas emissions. Trump motion to declare mistrial in E. Jean Carroll lawsuit denied, Tornado hits Virginia Beach, likely damaging hundreds of homes, Transgender Montana lawmaker Zooey Zephyr sues over censure, Debt ceiling standoff heats up over veterans' programs, Texas man who lost wife and son in shooting shares story, NYPD officer Troy Patterson dies 33 years after being shot in robbery, Supreme Court to hear case that could curb power of federal agencies, The weirdest items passengers leave behind in Ubers. Ben van Beurden - Biography | Mercedes-Benz Group > Company > Corporate Governance > Supervisory Board The Hague. Demands have increased for oil and gas companies raking in huge profits to do more to reduce high energy costs that are hurting consumers and small businesses. What will climate change look like for you? Is climate change killing Australian wine? Russias invasion of Ukraine has caused energy prices to rise further since the start of the year, suggesting that even higher bills may be likely for households and businesses. He is well versed in the petroleum-rich Middle East, and formerly ran Shells business in Qatar. He will be succeeded by Wael Sawan, who currently heads a unit that includes the companys lucrative liquefied natural gas business and its investments in clean energy, including wind and solar power. Shell intends to appeal that court judgement. He has held a number of operational and commercial It's much better to engage with companies and use your influence as a shareholder. Mr van Beurden was speaking at Europe's biggest oil refinery at Pernis near Rotterdam, a facility he plans to transform from refining petrol and diesel, to making biofuels and hydrogen over the next decade. The boss of oil giant Shell has insisted it can transition to net zero by 2050, but it will need the cash from its oil and gas business to pay for it. In February he sold 190,000 of his shares at an average price of 20.40 per share, raking in another 3.876million. As a subscriber, you have 10 gift articles to give each month. In February he sold 190,000 of his shares at an average price of 20.40 per share, raking in another 3.876million. Chief Executive Officer Ben van Beurden responded by slashing spending and cutting Shells dividend for the first time since World War II. The London-listed company said Thursday that Mr. Sawan would assume the position on Jan. 1, when Mr. van Beurden steps down after nine years in the role. Shell intends to appeal that court judgement. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Campaigners found he earned in one year the amount a typical UK worker would earn in six lifetimes - and that his 2022 pay package was294 times a Briton's average salary. All Rights Reserved. He said: "Why would you say: Let's not get our oil and gas demands from our own resources but let's import from somewhere else, probably with a larger carbon footprint. Get browser notifications for breaking news, live events, and exclusive reporting. "You can't divest from the world. Danya Bazaraa For Mailonline Ben van Beurden dismissed splitting its legacy oil and gas business from its renewables investment, a move urged by activist shareholder Third Point. See here for a complete list of exchanges and delays. The deal was criticized as too expensive at the time but looks wiser at current prices, analysts say. After Russia invaded Ukraine this year, he was quick, though, to begin severing those ties, including a valuable natural gas export joint venture on Sakhalin Island in the Russian Far East. During the last decade, he has been in the vanguard for the transition of Shell to a net-zero emissions energy business by 2050 and has become a leading industry voice . And, as critics warned, the company remains saddled. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". He also received a motoring allowance of 14,400 and money to pay for transport between his home and the office of 2,494. ', The comments below have not been moderated, By 'Whether it is executive bonuses or soaring profits, the money being made out of Putin's illegal war should be helping struggling families not oil and gas barons.'.