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Shell's Climate Policy Wins Support, CEO Pay Loses Backing
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Royal Dutch Shell plc recently held its annual general meeting, where the shareholders gave verdict on the two most debated issues — responsibilities regarding climate changes and chief executive, Ben van Beurden’s pay.
Addressing Climate Changes
Nearly 94.5% of the shareholders agreed with the company’s “wide-ranging and progressive approach” toward energy transition. They voted against a resolution, which could have compelled Shell to commit to firmer carbon-emission reducing objectives.
Last year, a similar resolution drew 6.3% votes in favor. Although the environment activists were hoping to witness an increase in the number, it declined to 5.5%, further showing shareholders’ confidence in the company’s approach toward the matter.
Shell’s Take on Emission: So far, Shell thinks that it is leading the movement against emissions — which incorporates emission from using its own products as well — with a target of slashing half of its carbon footprint by 2050. Moreover, the company already boasts several investments it made in solar facilities, batter-charging points for vehicles, clean technologies and others. The move also diversifies the company’s portfolio.
However, the environmentalists demanded more prominent and ambitious targets from the Anglo-Dutch energy major, which directs more than 90% of its capex toward fossil fuels. They believe that the actions from the company are not sufficient to satisfy the Paris climate Agreement, which sets a goal of keeping the rise in global temperature well below 2°C above pre-industrial levels.
Chief Executive’s Pay
Although Shell won support from its shareholders in 2017 for its remuneration report — which incorporated CEO Ben van Beurden’s pay of nearly €9 million (almost $10 million) — it was not an easy walk this time. While the report witnessed opposition from only 8% voters last year, this year it rose to more than 25%.
Moreover, Institutional Shareholder Services, an advisor of investors regarding corporate governance votes, opposed the payment resolution. They raised the incident in Pakistan, where a road tanker explosion involving a subcontractor of Shell killed more than 200 people, which did not weigh on the executive’s pay.
Price Performance
Headquartered in The Hague, the Netherlands, Shell’s stock has gained 31.7% in the past year, substantially outperforming 21.6% rise of the industry it belongs to.
Houston, TX-based Nine Energy Service is an onshore service provider. For 2018, its bottom line is likely to be up 181.7%. In the last reported quarter, the company delivered a positive earnings surprise of 28.6%.
Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is anticipated to improve 35.6% year over year, while its bottom line is expected to increase 159.5%.
London-based BP is an integrated oil major. For 2018, its bottom line is likely to be up 66.5%. In the last four reported quarters, the company delivered a positive average earnings surprise of 29.6%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Shell's Climate Policy Wins Support, CEO Pay Loses Backing
Royal Dutch Shell plc recently held its annual general meeting, where the shareholders gave verdict on the two most debated issues — responsibilities regarding climate changes and chief executive, Ben van Beurden’s pay.
Addressing Climate Changes
Nearly 94.5% of the shareholders agreed with the company’s “wide-ranging and progressive approach” toward energy transition. They voted against a resolution, which could have compelled Shell to commit to firmer carbon-emission reducing objectives.
Last year, a similar resolution drew 6.3% votes in favor. Although the environment activists were hoping to witness an increase in the number, it declined to 5.5%, further showing shareholders’ confidence in the company’s approach toward the matter.
Shell’s Take on Emission: So far, Shell thinks that it is leading the movement against emissions — which incorporates emission from using its own products as well — with a target of slashing half of its carbon footprint by 2050. Moreover, the company already boasts several investments it made in solar facilities, batter-charging points for vehicles, clean technologies and others. The move also diversifies the company’s portfolio.
However, the environmentalists demanded more prominent and ambitious targets from the Anglo-Dutch energy major, which directs more than 90% of its capex toward fossil fuels. They believe that the actions from the company are not sufficient to satisfy the Paris climate Agreement, which sets a goal of keeping the rise in global temperature well below 2°C above pre-industrial levels.
Chief Executive’s Pay
Although Shell won support from its shareholders in 2017 for its remuneration report — which incorporated CEO Ben van Beurden’s pay of nearly €9 million (almost $10 million) — it was not an easy walk this time. While the report witnessed opposition from only 8% voters last year, this year it rose to more than 25%.
Moreover, Institutional Shareholder Services, an advisor of investors regarding corporate governance votes, opposed the payment resolution. They raised the incident in Pakistan, where a road tanker explosion involving a subcontractor of Shell killed more than 200 people, which did not weigh on the executive’s pay.
Price Performance
Headquartered in The Hague, the Netherlands, Shell’s stock has gained 31.7% in the past year, substantially outperforming 21.6% rise of the industry it belongs to.
Zacks Rank and Stocks to Consider
Currently, Shell carries a Zacks Rank #3 (Hold).
Investors interested in the Energy sector can opt for some better-ranked stocks in the same space like Nine Energy Service, Inc. (NINE - Free Report) , Delek US Holdings, Inc. (DK - Free Report) and BP p.l.c. (BP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Nine Energy Service is an onshore service provider. For 2018, its bottom line is likely to be up 181.7%. In the last reported quarter, the company delivered a positive earnings surprise of 28.6%.
Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is anticipated to improve 35.6% year over year, while its bottom line is expected to increase 159.5%.
London-based BP is an integrated oil major. For 2018, its bottom line is likely to be up 66.5%. In the last four reported quarters, the company delivered a positive average earnings surprise of 29.6%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>