As gas prices have continued to surge across the globe in response to the Ukraine-Russia conflict, as well as the new restrictions on drilling brought on by the Biden administration, people across the globe have become enraged. Yet, despite their anger, the C-suite executives have been receiving more bonuses and salaries than ever before.
London-based Shell corporation announced on March 9th that CEO Ben van Beurden received a 50% surge in his pay package for 2022. Receiving a total of 9.7 million pounds ($11.5 million in USD) in his compensation package, was a direct reflection of the company doubling profits and making nearly $40 billion in 2022. With 2.5 million pounds coming as a bonus and 4.9 million pounds in stock, Ben took a lot as he exited at the end of 2022.
With replacement Wael Swan taking his place, the company will save some base money by only paying him 1.4 million pounds, but he is already expected to receive bonuses much bigger than his salary.
Despite the obvious price gouging, no leader across the globe has stepped up to make Shell or any other oil company bring their pricing more in touch with the current economy. With no plans to regulate the gas industry into becoming “fairer” to the average consumer, the price gouging will only get worse as time goes on. While the left and their groups of supporters are pushing electric vehicles harder than Betamax, they fail to see the realities of the situation in big cities, much less in rural America.
All of this adds up to Ben doing whatever he wanted to do price wise and in turn, it put pressure on the American and global economies. Other oil and gas companies could either follow suit or sell with less meat on the bone and corner the market. With suppliers more than happy to take the extra money from Shell, that mean less oil and gas were on the market and forced other companies to play ball. With everyone now making more profits and “stabilizing” the market, many considered their moves to be the best for the industry.
While many lawmakers, public officials, and people with a heavy social media presence are calling on them to do more to lower the price, there is little incentive for them to do so. The profits will remain flowing. For what it’s worth, Britain is calling for an additional tax on oil and gas profits to help their citizens who require public assistance to keep up with the price increases. By offsetting the government’s bill they can help prevent further tax increases on the public.
This kind of price gouging has been happening across the globe for years, but many were willing to suffer through it to keep up with the joneses and to keep themselves living in comfort. Many also realized that there was little to nothing they could do about the situation. These oil and gas conglomerates control the supply across the globe, and the little guys can’t afford to try and rock the ship.
Instead, action needs to come from governments across the globe. The US with President Biden’s changes on drilling and taxes that he enacted before the protestors even left the Capitol Building is to blame for the problems at home. Globally, they tend to follow our lead, with changes in the European, South America, and Australian markets having a less global and more local impact. If he had not made that decision the US and the entire world would be significantly better off today.
For now, this departed CEO gets to enjoy the benefits of his stock options and salary. It will only serve to continue to pad his bank accounts and establish more wealth in his family as the common American “shell”s out the extra money for his gas.