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Sir Philip Watts

How Shell’s Move To Revamp Culture Ended in Scandal

FROM OUR NOVEMBER 2004 SHELL NEWS ARCHIVE

How Shell’s Move To Revamp Culture Ended in Scandal

Paddy Briggs, a retired Shell communications executive, recalls one event where he and about 40 executives were issued shovels and pick-axes and dispatched to a Dutch village to help it restore an old playground. The oilmen gave up around lunchtime amid heavy rain. Such gimmicks became the butt of jokes, “but nobody said, ‘Hey, have we lost our minds here?’ “says Mr. Briggs.

As New-Age Style Came In,
Geology Skills Lost Out;
Imitating Jerry Springer
Oilmen at a Rainy Playground

By CHIP CUMMINS and ALMAR LATOUR

Staff Reporters of THE WALL STREET JOURNAL

November 2, 2004; Page A1

In late 2000, the head of the Dutch exploration unit at Royal Dutch/Shell Group asked his planners to deliver five-minute skits pitching ideas for discovering oil and gas.

In one skit, a naked employee ran on stage to catch the boss’s attention, say two people who attended. Another featured a mock episode of the Jerry Springer show, the incendiary daytime TV talk program. A third, after a bit of fun and games, promised to extract large quantities of natural gas cheaply from seemingly declining Dutch fields. read more

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All the worst Shell traits – secrecy, haughtiness, inertia

 From our Shell News Archive Sunday 31 October, 2004

The fallout from the Shell reserves fraud continues…

The Independent On Sunday (UK): Business View: Shell’s real location problem is finding more black stuff: “The misreporting of reserves scandal showed all the worst Shell traits – secrecy, haughtiness, inertia.”: “So what’s the hurry? Was it because Shell had to admit that it had uncovered another 900 million barrels of doubtful crude in its reserves and was likely to uncover 600 million more?”

Sunday Express (UK): Shell boardroom changes backfire on reserves news: “ONE OF the world’s most influential financial firms has given the thumbs down to an announcement from Shell it is to end its 97-year-old dual board structure.”: “…financial ratings agency Standard & Poor’s said it had adjusted Shell’s investment rating downwards to “creditwatch negative”, a status which implies there may be more bad news to come from the company.”

Mail on Sunday (UK):  Shell bosses in a charm offensive: “The Board, headed by Jeroen van der Veer, will see thousands of staff to explain the proposed changes and shore up the mood of the employees damaged by scandals over Shell’s inflated oil reserves.”: “Last week, Shell was forced to downgrade its estimates of proven oil reserves for the fifth time this year. Reserves are now a third lower than originally thought” read more

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A DREADFUL DAY FOR SHELL SHAREHOLDERS, ESPECIALLY UK SHELL SHAREHOLDERS

FROM OUR OCTOBER 2004 SHELL NEWS ARCHIVE

Friday 29 October, 2004 – A DREADFUL DAY FOR SHAREHOLDERS IN SHELL TRANSPORT AND TRADING COMPANY PLC

The Times (UK): The Hague for head office: “ALTHOUGH it maintains otherwise, Shell is effectively going Dutch…”: “From May, the big decisions will be taken by a new board in The Hague, which has seven Dutch members and only four Britons.”: “…from 2006 it will hold AGMs only in The Hague.”

The Times (UK): Fear of new Shell reserves downgrade: “ROYAL Dutch/Shell yesterday raised fears that it may have to write down its reserves by more than 1.5 billion barrels…”: “With less than 60 per cent of its reservoir audit completed, Shell was unable yesterday to put a ceiling on the potential downgrade of its reserves…”

Daily Telegraph (UK): Dutch chiefs take helm of merged Shell: “The radical move, which needs to be approved by shareholders, is likely to be seen as a Dutch takeover of the energy giant…”: “The news was overshadowed by yet more revelations about the company’s “proven” reserves…” read more

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The new Untouchables

From our October 2004 Shell News Archive

Daily Mail (UK): The new Untouchables

“Sir Philip Watts, former chairman of Shell, plainly hopes that the checks and balances of British corporate justice will save him from the hands of the Securities and Exchange Commission (SEC).”: “The quarrel has a hidden significance. Watts is personally under investigation on both sides of the Atlantic. The SEC apparently is interested in extraditing him to the United States to face allegations. Watts and his lawyers are proclaiming his innocence, but their tactics may also tie the British regulators in knots and keep the Americans at bay.”

Alex Brummer,

19 October 2004

BRITISH financial policing all too often looks dysfunctional. The time taken to conduct investigations and to bring charges more often than not runs to years not months. Cases frequently fall through the regulatory gaps.

And when the authorities seek to demonstrate the firm hand of regulation they find themselves pinned back by appeals tribunals. This is before European human rights law is brought into play.

The disclosure that Malcolm Walker, the founder and former chairman of Iceland, will not be prosecuted after four years of probes into allegations of insider trading is a case in point. read more

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Royal Dutch Shell Superbuckets leakage – platitudinous nonsense

“…it’s doubtful if the Brits will relate much too it either as we have a fairly low bullshit threshold! And the rational Dutch certainly wont – try it on a Delft engineer!”: “Top managers in Shell and aspirant top managers are a well-educated and talented bunch. They don’t believe that business can be helped by the sort of platitudinous nonsense that has been promulgated under their CEO’s name.

COMMENT BY A ROYAL DUTCH SHELL RELATED SOURCE ON PETER VOSER SUPERBUCKETS LEAKED MESSAGE

SUPERBUCKET motivational message from Shell CEO Peter Voser

Shell has for two or three decades had a predilection for the type of message that Voser is pushing out today. Really there is nothing new – just a reassembly of platitudes along with some new buzzwords. In my experience in Shell this sort of thing had no effect at all on behaviour or performance. The driver for it was probably British consultants who were given a brief to raise morale and encourage staff. It’s worth pointing out that less than 5% of Shell employees work in the UK and these would not naturally respond to English language and Anglo-Saxon nuanced statements of this sort. Indeed it’s doubtful if the Brits will relate much too it either as we have a fairly low bullshit threshold! And the rational Dutch certainly wont – try it on a Delft engineer! read more

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Oil’s not well for Shell directors

FROM OUR SHELL NEWS ARCHIVE SEPT 2004

The Times: Oil’s not well for Shell directors

“The debacle over the reserves lifted the lid on an organisation that appears to have knowingly deceived investors.”: “It was when Sir Mark Moody-Stuart was in charge in 1998 that a paper was produced under the title: Creating Value through Entrepreneurial Management of Hydrocarbon Resource Values. Inflating the reserve figures certainly did that.

By Patience Wheatcroft

Business Editor’s Commentary

Posted 24 Sept 04

SHELL directors are looking into an abyss when they would prefer to be gazing down an oil well. For years the company has been using its reserves faster than it has been replenishing them and it does not take a highly qualified petroleum engineer to tell that continuation of that strategy does not make for a happy future.

So although Jeroen van der Veer and his colleagues must have known that, in the wake of the devastating reserves scandal, a more cautious approach to business might be appropriate, they have decided this was an option they could not afford. So Shell is taking a deep breath and hoping the oil price is going to remain high while it goes off in search of new wells whose contents are likely to be rather more expensive to retrieve than it would wish. read more

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ROYAL DUTCH SHELL ROBBERS AND RASCALS

FROM OUR SEPT 2005 SHELL NEWS ARCHIVE

ROYAL DUTCH SHELL ROBBERS AND RASCALS

“…Shell shareholders have to foot the bill for lawyers fees run up in the course of defending fat cat crooks, such as Sir Phillip Watts, the disgraced former Group Chairman of the Royal Dutch Shell Group. Sir Phillip ended up with a $18 million USD pension pot AND with all his ongoing legal fees being paid by Shell shareholders. This was after he had LIED AND COVERED UP THE TRUTH ABOUT SHELL’S RESERVES, AND IN THE PROCESS, DESTROYED SHELL’S REPUTATION”

By Alfred Donovan: Monday 12 Sept 2005

The press is having a field day in devising colourful headlines about the scandal ridden Royal Dutch Shell Group. An article in “The Sunday Times” yesterday had a story under the headline: “Shell move robs UK investors”. It reported on the horrendous tax implications for UK Royal Dutch shareholders resulting from the recent Royal Dutch/Shell unification and the dubious way in which Shell has dealt with the controversy thus far.

Yesterdays “Independent on Sunday” used the term “Clever Rascals” about Shell in a headline relating to the Sakhalin project in Russia and the potential ramifications in respect of the critically endangered western grey whale. For the record, the Encarta Online Dictionary definition of a “rascal” is: “dishonest person: somebody, especially a man, who is dishonest or otherwise unethical”. read more

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Can Shell survive reserves affair?

FROM OUR SEPT 2004 SHELL NEWS ARCHIVE

PRWeek.com: News Analysis: Can Shell survive reserves affair?

Last week, the FSA imposed the largest fine in its history on Shell for market abuse over the oil reserves scandal. A Shell PR veteran traces the firm’s reputational demise.: “the reputation of Shell has been destroyed by hypocrisy, mendacity and deceit. Whether we will ever be able to be ‘sure of Shell’ again is very doubtful indeed.”

Written by Paddy Briggs

Published on September 03 2004

Posted 12 Sept 04

In 1997, advertising legend Maurice Saatchi was called in by the Royal Dutch/Shell Group to help it improve its image. Saatchi produced a number of adman slogans – but among all the hyperbole he said one very wise thing: ‘No communication can work effectively unless backed by real action.’

The years that followed Saatchi’s brief involvement with Shell were characterised by a plethora of comms initiatives – but also by actions at the top that have mortally wounded its reputation. read more

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Worlds leading source of information about Royal Dutch Shell

John Donovan, Shell Critic

John Donovan, Shell Shareholder

Screen Shot 2016-04-20 at 13.50.03Free access to over 40,000 articles, comment, historical information and news archive relating to corporate tax dodger Royal Dutch Shell, the world’s third largest company by revenue.

A TV documentary feature about our co-founder John Alfred Donovan, has aired in many countries. A related article was published in 10 languages.

John  is wrongly credited on zoominfo.com as being the founder, owner and Group Chairman of Royal Dutch Shell. He is, in fact, a long-term shareholder in Royal Dutch Shell Plc and its predecessor, Shell Transport & Trading Company Limited. read more

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Retired Shell engineer played central role in reserves scandal

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE

Financial Times: Retired Shell engineer played central role

“the company had been engaged in accounting manoeuvres since 1997-98, including a flawed internal audit function”; “Shell had engaged as [group reserves auditor] a retired Shell petroleum engineer – who worked only part time and was provided with limited resources and no staff – to audit its vast worldwide operations.”

By Adrian Michaels in New York and Carola Hoyos and Andrew Parker in London

Posted 30 August 2004

US and UK regulators on Tuesday went several steps further than Royal Dutch/Shell in their dissection of what went wrong.

The Anglo-Dutch oil group had already presented the main findings of an internal investigation in April into its reserves debacle.

That report heavily criticised dismissed senior executives – Walter van de Vijver, the former head of exploration, and Sir Philip Watts, former chairman. But it had less to say on how the company had been engaged in accounting manoeuvres since 1997-98, including a flawed internal audit function. The US’s Securities and Exchange Commission and the UK’s Financial Services Authority delve into the origin of the problems. “ read more

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The Shell Show, a tragicomedy in an unlimited number of parts

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE

The Daily Telegraph: The landslide bringing down Shell grandees

The SEC and FSA reports, however, go back to the previous regime, when Sir Mark Moody-Stuart was chairman.”: Even Shell fell for the “group bonding” mumbo-jumbo, and he was videoed stumbling blindfold around head office during one such session, talking of his desire to “encourage the creativity of people” around him. He seems to have succeeded.”

(Filed: 28/08/2004)

The Securities & Exchange Commission has announced its intention to pin the reserves scandal on individuals, writes James Moore

The Shell Show, a tragicomedy in an unlimited number of parts, featured a powerful double act this week.

On Tuesday America’s Securities and Exchange Commission and the Financial Services Authority both gave the company a good kicking for wrongly booking billions of barrels of oil and gas reserves as “proven”.

Now Harold Degenhardt, the director of the Securities & Exchange Commission’s office in Fort Worth, Texas, is hard at work on the sequel. “What people need to focus on is that companies only act through people,” he says. read more

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Solitary part-timer conducted group audit

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE

The Guardian: Solitary part-timer conducted group audit

“The FSA makes clear that Shell’s reserves difficulties began in 1997”

Terry Macalister

Wednesday August 25, 2004

The crucial auditing of Shell’s global oil and gas reserves was undertaken by one part-time engineer.

The revelation comes in the report by the Financial Services Authority, which describes group reserves auditing (GRA) of a key value indicator as “deficient and ineffective”.

Shell’s decentralised structure needed a robust internal reserves auditing function. Instead, it “had engaged as GRA a petroleum engineer – who worked only part-time and was provided limited resources and no staff – to audit its worldwide operations,” the FSA says. read more

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Shell settles fraud case for $150M

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE

CNN: Shell settles fraud case for $150M

Oil company agrees to pay SEC for overstating reserves, also settles market abuse case in Britain.

August 24, 2004

NEW YORK (CNN/Money) – Royal Dutch/Shell has agreed to pay about $150 million to settle charges by U.S. and British regulators that it vastly overstated oil reserves.

Under the settlement, Shell has also agreed to commit another $5 million to establish an internal compliance program under the direction and oversight of the company’s legal director, the Securities and Exchange Commission said in a statement.

The company units cited by the SEC, Royal Dutch Petroleum and Shell Transport, neither admitted to or denied any wrongdoing, the commission said. read more

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Money talks for Shell’s singing director

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE…

The Independent: Michael Harrison’s Outlook: Money talks for Shell’s singing director

“Shell is hardly a byword for good corporate governance, and yesterday it lived up to its reputation by producing another stonker…”: “As usual, Shell is unable to cast any light in the darkness as to why the two men’s severance arrangements are so different in size and nature. Perish the thought that one of them is being paid to grass up the other.”

13 August 2004

Shell is hardly a byword for good corporate governance, and yesterday it lived up to its reputation by producing another stonker of a pay-off for one of the directors caught up in its reserves reporting scandal.

On this occasion, however, there is a twist in the tail. Walter van de Vijver is going to have to sing for his severance. In order to qualify for his full £2.5m package, the company’s former head of exploration and production will have to co-operate with the “relevant authorities” as they conduct their various criminal inquiries into how Shell came to invent quite so many non-existent barrels. read more

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Shell names Jorma Ollila as new chairman

FROM OUR AUGUST 2005 SHELL NEWS ARCHIVE…

Financial Times: Shell names Jorma Ollila as new chairman

“The group lags behind competitors such as BP and ExxonMobil in production growth, faces lawsuits in the US over false reserves statements and announced a $10bn cost overrun at Sakhalin-2, its flagship Russian project.”

By Gordon Smith: Published: August 4 2005

Royal Dutch Shell on Thursday named Jorma Ollila, the current chief executive and chairman of Nokia, as a replacement for Aad Jacobs, its outgoing chairman.

Mr Ollila earlier this week outlined his plans to step down from the Finnish telecommunications group, where he has served as chief executive for the last 13 years.

The move follows calls by Aad Jacobs last month for his successor to be neither British nor Dutch following the unification of the oil group after 98 years trading as separate British and Dutch businesses. read more

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Selfishness won’t pay off, says Shell

Daily Mail: Selfishness won’t pay off, says Shell

“Shell refused to comment on whether it is reviewing the role of its auditors, KPMG and PricewaterhouseCoopers. The accountants may be targeted by the US law firm leading the class action suits against the embattled oil major.”

By Ruth Sunderland

30 August 04

EMBATTLED oil giant Shell is introducing a new bonus scheme next year to stamp out a selfish ‘me-first’ culture and encourage workers to devote themselves to the greater good of the company.

The group has come under fire for its lavish payouts to former bosses ousted in the wake of the reserves scandal that dragged it into unprecedented disgrace.

Sir Philip Watts received a £lm payoff and Dutchman Walter van de Vijver got £2.5m.

Boss Jeroen van der Veer said he hoped the new incentive plan would encourage staff to prioritise ‘enterprise first’ rather than ‘self first’. read more

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Financial Times: Sir Philip Watts and the Markets Tribunal: “Beware of what you boast. When the Financial Services Authority fined Royal Dutch Shell £17m last summer for market abuse, the regulator pointedly referred to the “speedy resolution” of the case…”: Tuesday 26 July 2005 By Martin Dickson Published: July 26 2005 Beware of what you boast. When the Financial Services Authority fined Royal Dutch Shell £17m last summer for market abuse, the regulator pointedly referred to the “speedy resolution” of the case, which was held up as an example of its new and desirable emphasis on faster justice. In fact, the outcome was not ultra quick. Shell first publicly revealed it had mis-stated its reserves the previous January, and by the time the FSA announced its fine, the company was already facing a substantially larger penalty from the Securities and Exchange Commission in the US. Still, by the past standards of FSA investigations, this was relatively fast. But now its speediness has come back to haunt it, with yesterday’s appearance of Sir Philip Watts, Shell’s former chairman, before the Financial Services and Markets Tribunal. Sir Philip, who has also been under FSA investigation, claims the regulator treated him prejudicially. First, it failed to give him a copy of its decision notice criticising Shell, and the right to respond. Second, it published the notice. For although it did not name Sir Philip, he was clearly identified with running the company. The FSA, he argues, could have delayed its notice until its individual investigations had been completed, or kept its findings at a higher level of generality. The FSA replies that the fact Sir Philip was not singled out, and that all its criticisms were at the level of corporate personality, means he cannot have been prejudiced. The case highlights the tension between the FSA’s desire for speedy results, and the rights and differing interests of companies and the individuals employed by them. If the FSA loses, it could mean enforcement cases are more tortuous and take substantially longer. The regulator is fond of saying that “justice delayed is justice denied”. But, as Sir Philip would doubtless agree, that may not always be the case.

Financial Times: Sir Philip Watts and the Markets Tribunal

“Beware of what you boast. When the Financial Services Authority fined Royal Dutch Shell £17m last summer for market abuse, the regulator pointedly referred to the “speedy resolution” of the case…”

Tuesday 26 July 2005

By Martin Dickson

Published: July 26 2005

Beware of what you boast. When the Financial Services Authority fined Royal Dutch Shell £17m last summer for market abuse, the regulator pointedly referred to the “speedy resolution” of the case, which was held up as an example of its new and desirable emphasis on faster justice.

In fact, the outcome was not ultra quick. Shell first publicly revealed it had mis-stated its reserves the previous January, and by the time the FSA announced its fine, the company was already facing a substantially larger penalty from the Securities and Exchange Commission in the US. read more

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Shell News Archive Saturday 31 December 2005

Shell News Archive Saturday 31 December 2005

Toronto Star: Royal Dutch Shell eyes Canadian minority buyout: Offer could be worth $7 billion: Saturday 31 December 2005: READ

 

Business Times Malaysia: Joint venture field delivers first gas: “SHELL Malaysia and Petronas Carigali Sdn Bhd have achieved a major milestone with the delivery of first gas from their jointly-operated new Shallow Clastics satellite field.: December 31 2005: READ read more

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Shell News Archive Wednesday 21 December 2005

Shell News Archive Wednesday 21 December 2005

 
Reuters: Shell Nigeria pipeline still blazing, output down: “Oil workers in boats and a helicopter circled a huge pipeline blaze in remote southern Nigeria on Wednesday, surveying the damage caused by a suspected dynamite attack that killed at least eight people.”: “The fire is still blazing. It’s as high as a 10-storey building. There is thick black smoke billowing,” a Reuters witness said.”: 21 Dec 2005: READ

 

AP Worldstream: Crude prices flat ahead of key market data from U.S.: “Overnight, crude prices were slightly buoyed after news that unknown assailants had blown up a Royal Dutch Shell pipeline in Nigeria on Tuesday, killing at least eight people and knocking 170,000 barrels of crude offline.”: Wednesday December 21, 2005: READ read more

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SHELL NEWS ARCHIVE SATURDAY 10 DECEMBER 2005

SHELL NEWS ARCHIVE SATURDAY 10 DECEMBER 2005

ShellNews.net: ALMOST 2 YRS AFTER THE RESERVES FRAUD, SHELL’S REPUTATION IS STILL RANKED IN THE CORPORATE GUTTER ALONGSIDE ENRON: “Sir Philip must qualify as the worlds greatest conman having pulled off a multi-billion dollar scam while retaining an $18 million dollar payoff/pension pot”: (revised Sat 10 Dec 05): READ

 

Petroleum News: Platts: Big oil dominates global energy: “Royal Dutch/Shell, which ranked first in last year’s survey, “has had a tough time of it since,” Platts said, explaining that “a huge reserves overbooking scandal, the firing of very senior officers, regulatory authority investigations in three countries, criminal proceedings, and substantial fines combined to spur a previously unthinkable radical organizational shake-up.”: Saturday 10 December 2005: READ read more

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Shell News Archive Wednesday 23 November, 2005

Shell News Archive Wednesday 23 November, 2005

Financial Times: The clockwork mind in Shell’s high echelons: “She is also one of the five executive directors of a business that has been through two years of hell, following the huge overstatement of its oil and gas reserves that led to the removal of Sir Philip Watts, the chairman, and two other directors, fines of about $150m and a corporate governance overhaul. Restoring morale and rebuilding the group’s shattered reputation are inevitably top priorities. Earlier this year, an internal survey found that fewer than half the 112,000 employees thought the company was well led. But are those executives who belonged to the previous senior team tainted by association? “It’s something that we can’t worry about,” Ms Cook says briskly. “Worrying about reputation or morale isn’t going to change it.”: “But the group faces another major headache – delays and cost overruns at some ofits biggest projects, including Sakhalin-2, its flagship Russian project. With hindsight, it is clear that Shell underestimated the enormous challenges involved in Sakhalin, she says.”: Posted Wednesday 23 November 2005: READ read more

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SHELL NEWS ARCHIVE 17 NOVEMBER 2005

FROM OUR SHELL NEWS ARCHIVE 17 NOVEMBER 2005

ShellNews.net: Rattled Shell management swamped with bad news, issues threat following President Putin’s Sakhalin2 tirade: Thursday 17 November 2005: 03.00am EDT: READ

FOX NEWS: Dems: Oil Execs Lied at Senate Hearing: “Spokesmen for Shell and ExxonMobil reached Wednesday stood by their executives’ statements last week.”: Thursday 17 November 2005: READ

Edubourse.com/La Société: Shell Exploration & Production expands its South Texas asset: Thursday 17 November 2005: READ

Legal Week: Herbies celebrates as FSA clears ex-Shell boss Watts: “The move saw the FSA’s regulatory decision committee (RDC) reject the call of the City watchdog’s own enforcement division to subject Watts to further investigation.”: “Watts continues to be investigated by the Securities and Exchange Commission in the US, where he has instructed Mayer Brown Rowe & Maw.”: Thursday 17 November 2005: READ read more

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Shell News Archive Sunday 13 November 2005

Shell News Archive Sunday 13 November 2005

Sunday Business Post (Ireland): Cassells meets Shell and Mayo protesters to seek mediation: Shell mediator Peter Cassells held his first informal meetings with Shell management and action group Shell to Sea last week, The Sunday Business Post has learned.”: Cassells travelled to Mayo last Tuesday evening to meet Shell management and the five local men who spent 90 days in prison for refusing to undertake not to obstruct the Shell pipeline.”: Sunday 13 November 2005: READ

Sunday Business Post (Ireland): Shell strike could hit oil supply: “More than a quarter of Ireland’s total oil supply could be affected by a planned strike at Irish Shell next week, The Sunday Business Post has learned.”: Sunday 13 November 2005: READ read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell News Archive Thursday 10 November 2005

From our Shell News Archive Thursday 10 November 2005

The Guardian (UK) Ousted Shell boss cleared over reserves scandal: “Sir Philip is still facing investigation by the securities and exchange commission, the US financial regulator, into his personal actions in relation to the downgrades, while one major class-action lawsuit against Shell is under way in America.”: Thursday 10 November 2005: READ

Financial Times: FSA decides not to pursue individuals: “Item two: in July last year it fined Royal Dutch/Shell £17m for mis-stating its oil reserves. Item three: after an inquiry that lasted well over a year into the role of “certain individuals”, it announced yesterday that it would not be taking any further action.”: “Perhaps it was some mischievous computers that took it into their hard drives to concoct all those inflated numbers.”: Thursday 10 November 2005: READ read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell News Archive Tuesday 9 November, 2005

From our Shell News Archive Tuesday 9 November, 2005

THE WALL STREET JOURNAL: THE AFTERNOON REPORT: “Oil executives went to Washington and tried to convince Congress not to siphon off any of their billions in third-quarter profits.”: Wed 9 November 2005: READ

Virgin.net: Shell’s ex-chairman escapes censure: “Former Shell chairman Sir Philip Watts has escaped censure from the City watchdog over his role in the oil giant’s reserves crisis.”: Wednesday 9 November 2005: READ

Reuters: FSA drops reserves probe into ex-Shell chairman: “Shell shocked investors in 2004 by admitting it had overstated its reserves by around a third. The scandal cost Watts and other senior Shell managers their jobs.”: Wed Nov 9, 2005: READ read more

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Shell farcical No. 2 ranking in 2005 Accountability Rating in FORTUNE magazine

Royal Dutch Shell farcical No. 2 ranking in the 2005 “Accountability Rating” published in FORTUNE magazine

Tuesday 27 September 2005 08.15am ET

By Alfred and John Donovan

27 Sept 2005

How much faith can investors/stakeholders have in a rating methodology capable of conjuring up a ranking which has no relationship to reality?

Royal Dutch/Shell Group is No. 2 in the rankings of the 2005 “Accountability Rating” announced on 22nd September in Fortune magazine. This is a rating on corporate responsibility of the prestigious FORTUNE Global 100 companies. The Accountability Rating is apparently not a measure of how good or bad a company is, but supposedly how smart. It follows that by removing or diminishing the ethical dimension in a corporate rating assessment, a bad company can be made to look good. read more

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The buck stops on the boss’s desk

The Guardian (UK): The buck stops on the boss’s desk

“Let us ignore the damage done to his reputation a) by the very fact that Shell had about a quarter less oil in the ground than it had been claiming and b) by that email in which Shell’s exploration chief told Sir Phil he was “sick and tired” of the lying over the reserves.”: “Frankly, the extraordinarily arrogant Sir Phil should consider himself lucky still to have his knighthood.”

Wednesday September 14, 2005

Sir Phil was to blame for scandal

Sir Phil Watts, the former chairman of Shell, will probably go to his grave mumbling that the reserves scandal of 2004 which wiped billions off the value of the company had absolutely nothing to do with him.

Yesterday he lost an FSA tribunal case where he argued that he had been denied his right to reply when the financial regulator censured Shell for engaging in “unprecedented misconduct” and fined it a record £17m.

The censure did not name Watts, but the former Shell boss, who was forced to resign after the scandal, argued that it was an attack on his leadership, that the FSA allowed him to be identified in the media and damaged his reputation. read more

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BBC NEWS: Tribunal upholds Shell criticism

BBC NEWS: Tribunal upholds Shell criticism

Wednesday 14 September 2005

Former Shell chairman Sir Philip Watts has lost an appeal against the UK’s city watchdog over how it handled the probe into Shell’s oil reserves crisis.

Sir Philip was forced to step down in January 2004 after the oil giant cut its reserves estimates by 20%.

Sir Philip accused the Financial Services Authority (FSA) of violating his rights by fining Shell £17m without giving him the opportunity to respond.

However, a tribunal has concluded that the FSA acted properly. read more

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Former Shell chief loses appeal over reserves

Daily Telegraph: Former Shell chief loses appeal over reserves

“We have further inquiries which we are pursuing in relation to Sir Philip. These have not yet been concluded.”

Wednesday 14 Sept 2005

By James Moore, Financial Correspondent (Filed: 14/09/2005)

Former Shell chairman Sir Philip Watts yesterday lost his appeal against the chief financial regulator’s handling of an investigation into the oil giant’s reserves scandal.

Sir Philip had accused the Financial Services Authority of “violating” his rights and running a “flawed investigation” into Shell, which admitted it had overstated its proven oil reserves by more than 4billion barrels. read more

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Verdict in Shell case has wider ramifications

Financial Times: FSA’s legal victory leaves questions unanswered

Verdict in Shell case has wider ramifications.: “In avoiding being derailed by a legal challenge from Sir Philip Watts, former chairman of Royal Dutch Shell, the Financial Services Authority yesterday scored a notable victory.”: “The FSA said it was still pursuing further enquiries relating to him.

Wednesday 14 Sept 2005

By Alison Smith

Published: September 14 2005

In avoiding being derailed by a legal challenge from Sir Philip Watts, former chairman of Royal Dutch Shell, the Financial Services Authority yesterday scored a notable victory.

Yet because his application fell at the first hurdle, more significant obstacles may still trip up the regulator in its efforts to combine fast action against companies with pursuit of individuals.

Sir Philip had argued that the FSA treated him prejudicially by failing to involve him in the procedures behind its decision to fine the Anglo-Dutch oil group £17m for mis-stating its oil and gas reserves. Even though the notices issued by the FSA did not single him out, he argued that anyone reading them would understand they were criticising individuals seen as responsible for the conduct at the heart of the watchdog’s complaint. read more

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Former chairman of Shell loses appeal against regulator over reserves debacle

The Guardian (UK): Former chairman of Shell loses appeal against regulator over reserves debacle

Wednesday September 14, 2005

Terry Macalister

The former Shell chairman Sir Philip Watts vowed last night to keep fighting to clear his name, despite losing a tribunal case against the Financial Services Authority.

The oil executive, who lost his job last year after Shell admitted it had overstated oil reserves by 25%, in effect dismissed the tribunal’s findings and repeated his view that the regulator’s report was “flawed”.

Sir Philip took the FSA to the Financial Services and Markets Tribunal, claiming the regulator had damaged his reputation by allowing him to be identified in the censure of the firm, which arose out of the reserves issue. The FSA fined Shell £17m and ruled that Shell had engaged in “unprecedented misconduct”. read more

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Ex-Shell chairman loses case against watchdog

The Independent: Ex-Shell chairman loses case against watchdog

“Sir Philip, who was sacked in disgrace last year after the scandal broke…”: “Shell has agreed to foot the legal costs of former directors dismissed over the scandal and last year provided $12m in expenses.”

Wednesday 14 Sept 2005

By Michael Harrison, Business Editor

Published: 14 September 2005

The former Shell chairman Sir Philip Watts suffered a blow to his attempts to clear his name yesterday after a tribunal ruled that the Financial Services Authority had not prejudiced him in a damning report into the oil giant’s misreporting of reserves.

Sir Philip, who was sacked in disgrace last year after the scandal broke, had argued that the FSA was under a duty to show him a copy of its report in advance and give him a chance to respond before publication. read more

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Former Shell boss loses case against FSA

The Times (UK): Former Shell boss loses case against FSA

The FSA, which is continuing to investigate Sir Philip’s personal conduct during the affair, welcomed the ruling… In August last year the FSA found Shell guilty of “unprecedented misconduct” in repeatedly mis-stating its oil and gas reserves levels from 1998 to 2003.

Wednesday September 14, 2005

By Patrick Hosking, Investment Editor

SIR PHILIP WATTS, who was ousted as Shell’s chairman after the company’s oil reserves scandal, suffered a setback yesterday in efforts to clear his name.

The Financial Services and Markets Tribunal found against Sir Philip and ruled that he had not been unfairly treated by the Financial Services Authority (FSA). The former oilman had complained that he had not been given the chance to challenge the FSA’s market abuse ruling and £17 million fine against Shell last year. read more

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Former Shell boss Watts loses case against FSA

Financial Times: Former Shell boss Watts loses case against FSA

“The judgement by the Financial Services and Markets Tribunal, which concerned an FSA penalty notice against the company itself, came as Sir Philip faces a separate investigation into his own conduct and vowed to keep fighting to clear his name.”

Tuesday 13 September 2005

By Barney Jopson
Published: September 13 2005

The Financial Services Authority was on Tuesday celebrating a legal victory over Sir Philip Watts, former chairman of Royal Dutch Shell, after a tribunal ruled the regulator had not prejudiced him during the oil company’s reserves scandal.

The judgement by the Financial Services and Markets Tribunal, which concerned an FSA penalty notice against the company itself, came as Sir Philip faces a separate investigation into his own conduct and vowed to keep fighting to clear his name. read more

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UK tribunal rejects complaint from ex-Shell chief Watts

AFX News Limited: UK tribunal rejects complaint from ex-Shell chief Watts

Tuesday 13 Sept 2005

LONDON (AFX) – A UK tribunal has thrown out a complaint made by ex-Royal Dutch Shell chairman Philip Watts over how the Financial Services Authority managed its probe into the energy giant’s reserves crisis.

The Financial Services and Markets Tribunal this morning ruled that Watts had not been ‘identified and prejudiced’ by the FSA when it described Shell’s numerous mis-statements of its reserves as ‘unprecedented misconduct’.

The investigation also led to a 17 mln stg fine for the oil giant. read more

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Ex-Shell boss loses showdown with London market watchdog

Ireland On-Line: Ex-Shell boss loses showdown with London market watchdog

“In addition to the FSA action, the fiasco brought Shell a $120m (€97.8m) fine from the Securities and Exchange Commission in the United States for violating record-keeping, reporting and anti-trust rules.”

Tuesday 13 Sept 2005

Former Shell chairman Philip Watts today lost a showdown with the London market watchdog into how it handled the investigation into the oil giant’s reserves crisis.

Watts had accused the Financial Services Authority (FSA) of violating his statutory rights by fining Shell a record £17m (€25.2m) without giving him a chance to respond.

His case – presented to an independent tribunal – was based on the claim that he was identified and prejudiced by the FSA when it issued a public notice penalising Shell. read more

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Reuters: ex-Shell boss loses appeal against UK regulator

Reuters: x-Shell boss loses appeal against UK regulator

“Philip Watts had argued that his reputation was unfairly impinged by the Financial Service Authority (FSA) ruling that the company, now called Royal Dutch Shell Plc, had engaged in “unprecedented misconduct” that resulted in market abuse, for which it was fined 17 million pounds ($31.06 million).”: Tuesday Sept 13, 2005

LONDON, Sept 13 (Reuters) – A UK tribunal has dismissed an appeal from the former chairman of the Shell oil group (RDSa.L: Quote, Profile, Research)

(RDSb.L: Quote, Profile, Research) against the UK financial regulator’s censure of the Anglo-Dutch company over the overstating of its oil reserves. read more

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Tribunal setback for Shell ex-chief Sir Philip Watts

London Evening Standard: Tribunal setback for Shell ex-chief: FORMER Shell chairman Sir Philip Watts has suffered a major setback in a bid to restore his battered reputation

Tuesday 13 September 2005

Nick Goodway,

FORMER Shell chairman Sir Philip Watts has suffered a major setback in a bid to restore his battered reputation.

He had claimed the Financial Services Authority blackened his name by association in its report on how the oil giant had massively overstated its reserves.

Watts, who was not named in the report but was clearly referred to, claimed the watchdog should have given him the right to defend himself against the allegations.

But the Financial Services and Markets Tribunal today dismissed his case, saying it agreed with the FSA that, while Watts was identifiable in the ‘matter’ of the Shell case, he was not actually identified in the notice issued by the FSA. read more

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ROYAL DUTCH SHELL attempt to thwart US Ogoni Class Action Lawsuit fails

ROYAL DUTCH SHELL attempt to thwart US Ogoni Class Action Lawsuit fails

Royal Dutch Shell attempt to thwart Ogoni US Class Action Lawsuit fails: Thurs 8 Sept 2005 17.20pm ET

By John Donovan

A US Magistrate Judge, Henry Pitman, has recommended in a report to a US District Judge that motions filed by Royal Dutch Shell to dismiss a class action lawsuit by former residents of Ogoniland, Nigeria, now living in the United States, should be denied.

The case in question before the UNITED STATES DISTRICT COURT OF SOUTHERN DISTRICT OF NEW YORK (Case No. 02-CV-7618) relates to Shell’s oil operations in Ogoniland, an area located in the Niger River delta area of Nigeria. The plaintiffs have charged Royal Dutch Shell with violations of the laws of nations and customary international law and seeks legal recognition of a class consisting of “all Ogoni or Ogoni family members who resided in Ogoniland during the period of October 1, 1990 to May 28, 1999” who were injured during the course of the alleged misconduct by Shell. The class could potentially consist of hundreds of thousands of people. read more

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SHELL MALAYSIAN CHAIRMAN, JON CHADWICK

SHELL MALAYSIAN CHAIRMAN, JON CHADWICK, UNDER FIRE FOLLOWING LEAKED EMAIL

Tuesday 30 August 2005: 11.30 ET

By Alfred Donovan

ShellNews.net has obtained a leaked copy of an email dated 18 August 2005 from Shell Malaysia Chairman, Datuk Jon Chadwick to all Shell employees in Malaysia, which responds to points raised exclusively on this website. Our articles have focused on the strikingly different approach adopted by Shell in response to employee class action lawsuits brought by its USA staff, as opposed to its utterly ruthless treatment dished out to its Shell Malaysian employees. Basically Shell has been deliberately dragging out the Malaysian class action lawsuits even though many of the claimants are elderly, some suffer from memory loss, some are ill and others have already died, while Shell heartlessly drags out the litigation. An example of one of the relevant articles can be read via this link: Read read more

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A Black Eye for Royal Dutch Shell Chairman Lord Oxburgh in relation to Shell fraud allegations

ShellNews.net: A Black Eye for Royal Dutch Shell Chairman Lord Oxburgh in relation to Shell fraud allegations

Tuesday 16 August 2005 03.50 ET

A Black Eye for Royal Dutch Shell Chairman Lord Oxburgh in relation to Shell fraud allegations

By John Donovan

Shareholders and journalists who attended the AGM’s of Shell Transport and Trading Company plc in 2004 and 2005 witnessed the hostile exchanges between Shell Transport Chairman Lord Oxburgh and an outspoken, thoroughly disgruntled shareholder, Mr John Farmer.

During the particularly tumultuous 2004 AGM Mr John Farmer publicly branded Sir Philip Watts as a “crook” – a comment which caught the attention of the news media. (links below) read more

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SHELL: Two radical steps could further distance Royal Dutch Shell from the reserves scandal

SHELL: Two radical steps could further distance Royal Dutch Shell from the reserves scandal

Monday 8 August 2005

By John Donovan

Although the media has welcomed the appointment of Jorma Ollila as the new Shell Chairman from June 2006, many of the news reports about his recruitment also include references to the Shell reserves debacle. This is despite the fact that over a year and a half has passed since news first broke about the scandal.

Commentary harking back to the scandal has been a regular feature of news reports about Shell. Although Shell has paid nearly a quarter of a billion dollars in regulatory fines and litigation settlements, other litigation is still proceeding, as well as on-going investigations, so there is no prospect of negative commentary abating any time soon. There is also the matter of the pending FSA tribunal ruling in respect of proceedings brought by disgraced former Shell Chairman Sir Phillip Watts. read more

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Sunday Telegraph: Mr Mobile’s Shell shock

Sunday Telegraph: Mr Mobile’s Shell shock

“Jorma Ollila, the new chairman of Shell, is one of the world’s most admired businessmen. But how will he adapt to the oil giant’s bureaucracy…”: “Shell is still dealing with the consequences of last year’s scandal of the over-booking of its oil and gas reserves. That debacle led to the departure of its three most senior executives, including Sir Philip Watts, the chairman”

Sunday 7 August 2005

(Filed: 07/08/2005)

Jorma Ollila, the new chairman of Shell, is one of the world’s most admired businessmen. But how will he adapt to the oil giant’s bureaucracy, having come from fast-growing, unhierarchical Nokia? asks Sylvia Pfeifer

British teenagers voted him the most creative thinker of modern times in a poll conducted last year by the Design Council. It was an unexpected accolade from text-obsessed 14-to-18 year-olds for Jorma Ollila, the chief executive of Nokia, the Finnish mobile phone manufacturer. read more

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The Independent (UK): Royal Dutch Shell names Nokia chief as next chairman

The Independent: Royal Dutch Shell names Nokia chief as next chairman

“Mr Ollila is expected to play a key role in the strategic development of Shell, which is still recovering from the reserves misreporting scandal last year which cost the previous chairman, Sir Philip Watts, his job and prompted the sweeping corporate overhaul of the company.”

Friday Aug 05, 2005

Michael Harrison

The oil giant Royal Dutch Shell is to appoint an outsider as chairman for the first time in its 100-year history after announcing yesterday that Jorma Ollila, the outgoing chief executive of the Finnish mobile phone group Nokia, will take up the post in June.

Mr Ollila, who will become the non-executive chairman of Nokia at the same time, will be paid pounds 500,000 in his new role at Shell and will be expected to work for the company for two to three days a week. read more

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BLOOMBERG: Shell Names Nokia Chief Executive Ollila as Chairman

BLOOMBERG: Shell Names Nokia Chief Executive Ollila as Chairman (Update6)

“Shell, Europe’s second largest oil company, ousted former Chairman Philip Watts and two other senior executives, paid a record fine in the U.K. and lost its top tier credit rating after announcing the restatement of its oil and gas reserves last year.”: “Cost overruns and delays at Shell projects such as its Sakhalin oil and gas venture in Russia have also spurred concern about the company’s project management and internal control, according to analysts and investors.”

Posted Friday 5 August 2005

Aug. 4 (Bloomberg) — Royal Dutch Shell Plc, seeking to restore investor confidence after overstating oil and gas reserves for three years, said it picked Nokia Oyj’s Jorma Ollila as chairman following an eight-month search.

Ollila, Nokia’s chairman and chief executive officer, will succeed Aad Jacobs in the non-executive role at The Hague-based Shell from June 1, 2006, said Bianca Ruakere, a Shell spokeswoman. Ollila, 54, who turned Nokia into the world’s biggest mobile phone company, this week said he’ll step down as CEO next year. read more

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Daily Mail: Part-time job at Shell is a nice little earner

Daily Mail: Part-time job at Shell is a nice little earner

“Ollila’s salary gives him membership of a fast-growing club of part-time chiefs earning £500,000 a year. Shell has been looking for a new chief since last October when it began reshaping itself in the wake of a humiliating oil reserves scandal that cost chairman Sir Philip Watts his job.”

Friday, August 5, 2005

By Tom Stevenson

CITY FINANCE

Deputy City Editor Ruth Sunderland

Telephone 020 7938 6000

Web www.thisismoney.co.uk

ROYAL Dutch Shell has appointed the outgoing chief executive of Finnish phone giant Nokia as its new non-executive chairman on a part-time salary of £500,000. Jorma Ollila will only be required to work two to three days a week in The Hague and stays on as part-time chairman of Nokia.

Ollila’s salary gives him membership of a fast-growing club of part-time chiefs earning £500,000 a year. Others include Sir Christopher Gent at GlaxoSmithK-line, Niall FitzGerald at Reuters and BT’s Sir Christopher Bland, who works three days a week. read more

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Generous pension pots for the board while occupational schemes face shortfall

The Guardian (UK): Generous pension pots for the board while occupational schemes face shortfall

“Under Sir Phil’s leadership Shell was shaken by a crisis over the level of its reserves, which it eventually conceded had been overstated by some 25%. Investors were shocked to read a leaked email from former exploration boss Walter van de Vijver to Sir Phil, the former chairman, in which he said: “I am becoming sick and tired about lying about the extent of our reserves issues.”

Thursday August 4, 2005

Phillip Inman

Directors of Britain’s biggest companies can look forward to generous pension payouts, according to the Guardian’s survey of top executive pay.

The nine executive directors on the Unilever board have a pension pot worth £80m to see them through retirement – and the figure will almost certainly rise as the group makes more contributions before many of them retire.

Niall FitzGerald, the Anglo-Dutch consumer goods firm’s former chief executive, is one of two directors who have already started taking their pensions. He retired last September after 37 years service with a pension pot worth almost £17m. His colleagues Keki Dadiseth and Patrick Cescau, have also grabbed the top 10 places in the league of corporate pension pots, though they have yet to retire. read more

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Shell names Jorma Ollila as new chairman

Financial Times: Shell names Jorma Ollila as new chairman

“The group lags behind competitors such as BP and ExxonMobil in production growth, faces lawsuits in the US over false reserves statements and announced a $10bn cost overrun at Sakhalin-2, its flagship Russian project.”

By Gordon Smith: Published: August 4 2005

Royal Dutch Shell on Thursday named Jorma Ollila, the current chief executive and chairman of Nokia, as a replacement for Aad Jacobs, its outgoing chairman.

Mr Ollila earlier this week outlined his plans to step down from the Finnish telecommunications group, where he has served as chief executive for the last 13 years.

The move follows calls by Aad Jacobs last month for his successor to be neither British nor Dutch following the unification of the oil group after 98 years trading as separate British and Dutch businesses. read more

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Financial Times: Case of ex-Shell chief could make life complicated for FSA

Financial Times: Case of ex-Shell chief could make life complicated for FSA

Thursday 28 July 2005

By Barney Jopson

Published: July 28 2005

The Financial Services Authority and headstrong business executives do not mix. Following a clash with Sir David Prosser, chief executive of Legal & General, at a tribunal earlier this year, the FSA this week crossed swords in the same place with Sir Philip Watts, former chairman of Royal Dutch Shell.

L&G’s criticism of a mis-selling case against it triggered an overhaul of FSA enforcement procedures announced last week. Sir Philip’s action has the potential to prompt even more change at the regulator. read more

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Daily Express: Boss in Shell scandal starts legal fightback

Daily Express (UK): Boss in Shell scandal starts legal fightback

“… Watts’ counsel, David Pannick, claimed Watts could be easily identified by any “reasonable reader”. This was because the notice referred to Shell’s annual report, signed off by Watts, which contained false reserves statements, and to a Shell-commissioned report into the scandal, naming him among others. This had led to “contemptuous press coverage”.

Published by Daily Express 26 July 2005

By Andrew Johnson

SIR PHILIP WATTS, ousted as Shell’s boss in the oil reserves scandal, yesterday fired the opening shot against the Financial Services Authority in the fight to clear his name.

His lawyers told a preliminary hearing of the Financial Services and Markets Tribunal the City watchdog had infringed his rights by identifying him in a potentially damaging way when explaining why it had fined Shell £17million for market abuse. He should have been given an advance look at the notice to answer criticisms, they said. read more

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