PIRC : independent research and advisory consultancy

PIRC is the UKs' leading independent research and advisory consultancy providing services to institutional investors on corporate governance and corporate social responsibility. Since 1986, it has been the pioneer and champion of good corporate governance within the UK.
Authoritative resource
PIRC has a wide spectrum of clients ranging from pension funds, faith-based investors, trade unions to banks and asset managers. Its Corporate Governance Service is an authoritative and vital resource for active investors, whilst its widely-read Shareholder Voting Guidelines provide a market-wide benchmark for investors and forms part of the movement for corporate governance reform and long-term wealth creation strategies for responsible investors.

For more information about PIRC or to arrange a meeting, contact Janice Hayward, or call us on 0207 247 2323.

Anger at Shell's golden handcuffs

May 11 2008

The Observer

Royal Dutch Shell is facing a showdown with investors over its plans to pay £3m to directors simply to stay on the board for three years.

The oil giant is giving shares equivalent to their annual salary - around £1m each - to finance director Peter Voser, exploration and production director Malcolm Brinded and gas and power director Linda Cook 'to enhance retention ahead of the forthcoming board successions'. Chief executive Jeroen van der Veer is due to retire next June, while Robert Routs, head of its downstream and chemicals business, will leave by the end of the year. Shell is keen to keep the three directors on board to ensure continuity.

But one investor said the payments were pointless: 'I have not seen a business it works [as a retention tool] in. The executives still leave.'

Corporate governance monitor PIRC is also recommending that its members vote against the remuneration report, saying: 'PIRC does not support the use of retention awards, in particular when no performance conditions are applied.'