Thursday 11 March 2021 8:14 am

New chairman for Shell as CEO takes 42 per cent pay cut

British-Dutch energy giant Shell has today announced the appointment of Andrew Mackenzie as its new chairman.

Mackenzie joined Shell’s board in October 2020 after a career in the energy sector, most recently as group CEO of BHP.

He also had a three-year stint at Rio Tinto, after a 22-year career at BP.

The appointment came as the company announced that CEO Ben van Beurden took a 42 per cent cut to his total pay last year.

The cut was a reaction to the firm’s profit tumbling due to the Covid-19 pandemic.

Beurden’s 2020 pay was €5.8m, compared with €10m the year before, as the company disclosed in its annual report that profit had hit a two-decade low last year.

Mackenzie to play ‘pivotal’ role

Mackenzie will succeed Chad Holliday who will step down on 18 May after serving as chair for six years and as board director since 2010.

Holliday welcomed the announcement and said that his successor is the right person for the job.

“Andrew brings a wealth of leadership and sustainability experience, scientific curiosity and commercial acumen that ideally equip him to help Shell navigate the energy transition and deliver on the far-reaching Powering Progress strategy.”

Mackenzie said it was a privilege to be appointed as chair in such a pivotal time for the industry.

“I believe Shell has an exceptional portfolio of future-facing assets and I look forward to working with the Board to profitably accelerate Shell’s transition into a net-zero emissions energy business that continues to generate substantial value for shareholders, customers and communities alike,” he said.