Shell CEO receives 126% pay rise

CEOs should be rewarded for the value they create for their companies, employees and the impact of their action on the environment. The pay of Shell’s CEO, Ben van Beurden, more than doubled in 2018 to ￡17.2m at the back of rising oil prices and failing to achieve the climate change target. There is nothing sinister about high pay award, but he has been rewarded 143 times greater than average pay of oil company’s UK workforce – in effect the company is telling employees that they’ve underperformed their CEO 143 times. Is this the best way a company can motivate employees who creates value? https://lnkd.in/ghbbZ9b #business #ceos #climatechange #pay #oils #award

The revelations mean his pay is 143 times that of the average Shell employee's salary. The company said: "We reviewed Shell's CEO pay ratio externally against the ratios that we see in other FTSE 30 companies, which we calculated based on their disclosed employee numbers and employee costs. "We believe our ratio is consistent with those seen in other FTSE 30 companies, although it is challenging to draw a meaningful comparison given the different markets and industries in which they operate." #Reward https://lnkd.in/eQmbX75

So the Shell CEO is paid ￡17m. That is 143 times more than the average Shell employee in the UK. Is it right? After all he has the highest level of responsibility Is it wrong? Because individual contribution do not justify it.