Job ousted by investor pay revolt at Shell

By Sam Fleming for MailOnline
Updated: 15:45 EST, 11 September 2009

Royal Dutch Shell has buckled under shareholder pressure and pushed aside the chairman of its boardroom pay committee following an unprecedented investor revolt.

Former Reuters director Sir Peter Job will be replaced by Hans Wijers from October and will stand down from the oil giant's remuneration committee in May 2010.

Lord Kerr will also step down from the body.

The move comes after Shell's board was shaken by an unprecedented and humiliating defeat at the hands of shareholders in May.

In the biggest City rebellion on record, some 61per cent of the oil titan's investors either voted outright to reject 2008 pay packages or withheld their votes.

The revolt reflected a significantly more militant mood among institutional investors.

Fund managers have become restive about corporate governance failures and grotesque pay packages after coming under fire for failing to spot the impending implosion of the banking industry.

Shell's reshuffle came just a day after Marks & Spencer parachuted National Grid heavyweight Steven Holliday into the top position on its pay committee.

He replaced former Bradford & Bingley director Louise Patten.

M&S has been under intense fire because of its decision to promote Sir Stuart Rose to the position of Executive Chairman, breaching City guidelines.

BP, Royal Bank of Scotland, Next, Cable & Wireless and homebuilder Bellway are among the other companies that have been hit by pay rebellions in recent months.

Peter Montagnon, director of investment affairs at the Association of British Insurers, said: 'The rejection by shareholders of the remuneration report at the last AGM required a response from the company. This is now an opportunity for a fresh start.'

Shell 'B' shares fell 6p to 1,695p.