Shell staff in line for 8% bonus after record profits

Energy group says reward reflects company's recent financial success but is not a response to inflation

Most staff at Shell, which employs about 82,000 people worldwide, are eligible for the pay boost. Reuters
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Shell employees will receive a one-off 8 per cent bonus after the energy company reported record profits from the sharp rise in energy price.

Most staff at the oil company — which employs about 82,000 people worldwide — will be eligible for the pay boost.

Those at executive vice president level or higher will be excluded from the taxable payout.

Shell said the award reflects the company's current financial success but has no link to the rising cost-of-living crisis in the UK

A Shell representative said: "In recognition of the contribution our people have made to Shell's strong operational performance against a recent challenging backdrop, our executive committee has decided to make a special recognition award of 8 per cent of salary to all eligible staff across the world.

"The award enables those employees to share in our current operational and financial success — it is not a response to inflation or cost-of-living challenges."

Shell said last week that its adjusted profit hit nearly £9.5 billion ($11.5bn) for the second quarter of the year in a record set of results, a trend replicated across the industry.

BP posted $8.45bn in profit on Tuesday, while profit at Centrica leapt to £1.3bn in the first six months of 2021 from £262m during the equivalent period in 2021 — a leap which prompted the UK’s biggest energy retailer to reinstate its dividend for the first time since 2020.

Rising energy group profits come as gas prices have risen significantly across Europe since Russia's invasion of Ukraine in February.

Gas and electricity bills could reach £3,615 for UK households next year as the cost of oil continues to inflate, consultancy Cornwall Insight warned on Tuesday.

Shell said it would return billions of dollars to its shareholders after posting its quarterly financial results last month.

Updated: August 03, 2022, 4:41 PM