Shell awards 8% annual salary bonus to employees as oil firm reports record profit
Oil and gas giant, Shell, has announced the award of a bonus equivalent of 8% of annual salary to most of its employees as the company reports record revenue and profits.
Oil companies have been reporting unprecedented profit in the second quarter of 2022 especially due to high energy prices globally which is negatively impacting on consumers.
According to Bloomberg, this disclosure is contained in an email sent by Shell, where it noted that the decision is in recognition of the contribution made by its staff to the company’s strong operational performance against a recent challenging backdrop……Continue Reading
Shell in an email 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% of salary to all eligible staff across the world.’’
The payment which will be a one-off, will be made to most of Shell’s 82,000 employees, but not to senior staff who are executive vice presidents or higher, adding that contract staff and others who are on secondment will not benefit from the bonus payment.
The oil and gas firm said, “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.”
Major international oil and gas companies a few days ago reported record profits for a second consecutive quarter in 2022 due to soaring oil and gas prices and strong refining margins.
Exxon Mobil on Friday, July 31, reported an unprecedented $17.85 billion profit for the second quarter with Chevron announcing a record $11.62 billion profit.
The London-based Shell also said it earned $16.7 billion when the cost of supplies is factored in. Its adjusted earnings for the quarter, which exclude certain price changes and one-time expenses, was $11.5 billion.
The record profits marked a stunning turnaround from the early days of the coronavirus pandemic, when cities were locked down and demand for fuels plummeted leading to thousands of employees being laid off