Shell's Ex-Head of Oil Trading in US Claims He's Owed $37m Bonus

Shell's former head of oil trading in the United States claimed he was stiffed on his 2020 bonus by more than US$29 million (S$37.2 million), in a lawsuit that shines a light on compensation inside the oil major's lucrative trading unit.

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HOUSTON -

Mr John Dimech alleged that even though his unit's profits doubled in 2020, his bonus for that year was little changed after Shell unexpectedly modified pay calculations, according to the lawsuit in federal court in Texas.

He claimed that if Shell had adhered to its established formula for calculating bonuses, he would have received about US$40 million. But he got only about US$11 million instead.

Shell does not disclose the performance of its trading unit to investors.

According to Mr Dimech, the North America crude group boosted profit from record levels as businesses shut and people hunkered down at home during the onset of the Covid-19 pandemic.

"Shell has a competitive pay and benefits programme, benchmarked across the energy industry," a spokesperson for the London-based company said, declining to comment further on the ongoing litigation.