New Shell chief executive Wael Sawan is under pressure to boost shareholder returns that have lagged those of key competitors. Photograph: PA Wires/ PA ImagesShell’s new chief has announced a restructuring of the energy major’s core business units just a month after taking the helm, a move that could result in job cuts.
Mr Sawan is under pressure to boost shareholder returns that have lagged those of key competitors. There had been speculation that a shake-up was on the cards after activist investor Dan Loeb called on the company to break off its liquefied natural gas, renewables and marketing divisions into a stand-alone business.Shell is now choosing to fold clean energy into the refining segment. It will also discontinue its strategy, sustainability and corporate relations directorate.
Under the changes, expected to take effect July 1st, Shell will reduce the size of its executive committee from nine to seven members. The move will not affect financial reporting segments, according to the statement.