Shell executive gets EUR 3.8m severance pay

12 August 2004

AMSTERDAM — Former Royal Dutch/Shell director Walter van de Vijver is to receive a severance package valued at EUR 3.8 million, it was confirmed on Thursday.

Dutchman Van de Vijver was one of several executives to resign after the Anglo-Dutch energy giant revealed it had overstated its oil reserves earlier this year.

Shell said in a statement that the severance pay for Van de Vijver, who headed the exploration and production division, would be payable in instalments.

The company also said the deal would be subject to continuing co-operation with the relevant authorities.

The amount was based on Van de Vijver’s 25 years of service, Shell said.

Royal Dutch/Shell is the third-largest oil group in the world and has two boards as the Amsterdam-based Royal Dutch owns 60 percent of the group and the British-run Shell owns the other 40 percent.

Shell downgraded its proven reserves by 4.47 billion barrels, or 23 percent, in four separate revisions starting in January, Associated Press reported.

Former chairman, Sir Philip Watts, received a GBP 1 million (EUR 1.5 million) pay-off after he was sacked in March, though Shell has not ruled out legal action against him, the Guardian newspaper reported.

Meanwhile, the oil giant said on Thursday it would unify its Dutch and British supervisory boards. It is also considering merging its two holding companies.

Subject: Dutch news, Royal Dutch/Shell