Shell employees around the world are set to receive a bonus equivalent to 8% of their salary after the oil giant made record profits.
The London-based oil company announced that it will give a one-off payment to 82,000 of its global staff. The bonus is in recognition of their workers’ contributions for Shell’s strong performance in the second quarter.
“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 company 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.”
Shell added that members of its executive committee, executive vice-presidents, and contractors will not be included in the bonus payouts.
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Shell’s record profits
In July, Shell revealed that it earned nearly US$11.5 billion (AU$16.6 billion) for a second consecutive quarter. The figure is 26% higher compared to oil giant’s earnings between January and March of this year. It is also more than double the profits that the company’s profits during the same period in 2021.
Analysts attribute Shell’s strong performance to rising global oil prices due to Russia’s invasion of the Ukraine. The company’s industry rivals BP, ExxonMobil, and Chevron have also posted record profits in the second quarter.
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The announcement is also considered a major turnaround for Shell, who had struggled significantly due to the Covid pandemic. The company had to lay off thousands of its workers, suspend bonuses, and capped salaries during this period.
Trades Union Congress General Secretary Frances O’Grady criticised Shell’s announcement, calling its record profits “an insult” to the millions of workers who are dealing with soaring energy bills.