:00:00. > :00:21.Ben Van Beurden in the hot seat - is the boss of Shell paid too much?
:00:22. > :00:27.Shareholders will have their say at the AGM today.
:00:28. > :00:29.The Greek tragedy moves to another act - eurozone finance ministers
:00:30. > :00:32.grapple with the country's long delayed bailout
:00:33. > :00:47.Hello. Welcome to World Business Report. I'm Sally Bundock.
:00:48. > :00:50.Also in the programme: Asia pacific airlines are back in the black.
:00:51. > :00:57.The rebellion against multi-million pound executive pay is swelling.
:00:58. > :01:00.Today, it's Shell executives who face a shareholder backlash.
:01:01. > :01:03.Top investor groups are opposing the firms rising pay packet
:01:04. > :01:06.for boss Ben Van Beurden who is in line for a salary of ?1.4m
:01:07. > :01:16.That's despite the steepest losses in 13 years
:01:17. > :01:40.Shell's AGM is set to be the latest revolt in this year's Shareholder
:01:41. > :01:43.Spring, after BP shareholders voted against boss Bob Dudley's ?14m pay.
:01:44. > :01:47.With me is Josh Black, editor-in-chief of Activist Insight.
:01:48. > :01:58.It is nice to see you. We have had this conversation before, when BP
:01:59. > :02:02.had the AGM. Is he paid too much? It is complicated. He is paid slightly
:02:03. > :02:10.more than his peers in the oil and gas space. He is paid a lot less
:02:11. > :02:15.last year than Bob Dudley was paid... Almost half. Exactly. It is
:02:16. > :02:22.towards the lower and of his potential remuneration package if
:02:23. > :02:26.that is believable. And during this time there has been a lot happening
:02:27. > :02:33.at Shell, grappling with plummeting oil prices. And also, BG Group, the
:02:34. > :02:37.megamerger which has created Shell and the combined company to be one
:02:38. > :02:44.of the biggest oil and gas producers in the world, surely that need some
:02:45. > :02:47.sort of reward. He is paid on metrics including safety,
:02:48. > :02:53.negotiating the merger, die vesting assets, which is where a large chunk
:02:54. > :02:56.of the award comes from -- divesting. He has not been paid a
:02:57. > :03:01.huge amount of performance related pay when it comes to shareholder
:03:02. > :03:05.value this year, so shareholders, you know, rightly feeling that the
:03:06. > :03:10.company is at the bottom of the peer group, he is not paid on that
:03:11. > :03:16.basis, but his salary has no up and this is at a time when earnings are
:03:17. > :03:20.at a low and there is cash being taken out of the business -- nudged
:03:21. > :03:26.up. In terms of his salary, let's say shareholders do... A majority
:03:27. > :03:30.don't agree with the remuneration package, it won't change it, so what
:03:31. > :03:36.impact will it have? It is advisory, so the company will have to go to
:03:37. > :03:41.shareholders with a remuneration policy, which is binding, setting up
:03:42. > :03:48.principles of pay, so if they lose today that it will be hard for them
:03:49. > :03:53.to put forward their ideal package next year, so that will be a vote to
:03:54. > :03:59.watch. It will still be a major embarrassment for Shell. Do you
:04:00. > :04:02.feel, then, in recent years, shareholders have Jayden and more
:04:03. > :04:06.influence when it comes to these kind of decisions? Yeah, they have
:04:07. > :04:09.definitely had more votes on the subject. They have had more
:04:10. > :04:13.influence in that way. I think they are still figuring out how best to
:04:14. > :04:19.use these votes. What redlines they want to draw, what kind of long-term
:04:20. > :04:22.incentive plans they want to see and how they want to structure these pay
:04:23. > :04:27.deals, so there is still learning to go on and it will continue to
:04:28. > :04:30.develop -- red lines. All right, Josh, thanks for coming in and I
:04:31. > :04:34.will talk to you more on that subject. We will keep you up-to-date
:04:35. > :04:35.on the AGM today and we will let you know how it goes.
:04:36. > :04:41.Asia's airlines are turning a profit once again after some lean years.
:04:42. > :04:43.And here to tell us why is Rico Hizon in
:04:44. > :04:56.It is nice to see you. Less turbulence right now among the
:04:57. > :05:00.regional carriers and, sadly, they recorded a combined earnings of $6.9
:05:01. > :05:07.billion US last year compared with losses of more than $1 billion in
:05:08. > :05:12.2014. The strong results were due to Thomas sustained growth, lower fuel
:05:13. > :05:17.prices and operating efficiency including a record high passenger
:05:18. > :05:21.load factor -- due to one, sustained growth. Earlier I asked if this
:05:22. > :05:25.trend can be sustained into 2016. At this stage it looks like it will.
:05:26. > :05:29.Oil prices have come up. They are around $50 a barrel. That is where
:05:30. > :05:36.most of our loans are posture the business cases long-term have been.
:05:37. > :05:39.-- airlines' business cases. These airlines are still gonna have to
:05:40. > :05:44.make smart moves to stay ahead of the competition. They're gonna have
:05:45. > :05:50.to invest in product to make it a long-term viable thing for them.
:05:51. > :05:53.And, Sally, breaking down the numbers, Korean Airlines and
:05:54. > :06:00.Singapore Airlines have done well on the lower rises, but they are not
:06:01. > :06:07.having the impact they once did with flag carriers with the narrowing
:06:08. > :06:09.margins of airfares. Sally. Thank you. Talk to you soon. Let's turn
:06:10. > :06:09.attention to Greece. Eurozone finance ministers will
:06:10. > :06:11.discuss Greece's long delayed bailout payment
:06:12. > :06:13.and crucial debt relief The IMF said on Monday Greece needs
:06:14. > :06:17.unconditional debt relief from European Union creditors,
:06:18. > :06:19.a move that Germany opposes. Reforms agreed
:06:20. > :06:21.on Sunday could help unlock more And experts think Athens is closer
:06:22. > :06:25.to meeting conditions to get 10 million euros -
:06:26. > :06:53.that's $11.2 billion - in new loans Demonstrators outside parliament
:06:54. > :06:56.over the weekend as lawmakers approved another batch of reforms
:06:57. > :07:03.that could pave the way for more bailout funds. The reforms include
:07:04. > :07:06.raising taxes, setting up a new privatisation fund and making it
:07:07. > :07:10.easier for banks to deal with problem loans. Plus a mechanism for
:07:11. > :07:16.cutting spending if financial targets are missed. The Greek
:07:17. > :07:20.Finance Minister needs to things - a long-delayed bailout payment and
:07:21. > :07:25.debt relief. Rees needs the bailout cash ahead of debt repayments,
:07:26. > :07:29.especially more than 2 billion euros due to central banks in the eurozone
:07:30. > :07:34.in July -- two things. But zone finance ministers will also debate
:07:35. > :07:36.that relief, something the International Monetary Fund even CIS
:07:37. > :07:42.is needed to make Rees's debt burden sustainable, which would mean lower
:07:43. > :07:45.interest rates and more time to repay debts but no reduction or
:07:46. > :07:51.haircut to the amount that Athens must pace back -- is needed --
:07:52. > :07:54.Greece -- payback. In other news: Spotify has seen
:07:55. > :07:57.revenue reach $2.2 billion in the past year,
:07:58. > :07:59.but the Swedish music streaming Spotify offers music over
:08:00. > :08:02.the internet for free with advertisements, or
:08:03. > :08:05.ad-free for a fixed monthly rate. Revenue increased by 80% over the
:08:06. > :08:08.past year, beating the 45% growth But net losses increased by 7%
:08:09. > :08:20.from the previous year. Toyota is recalling nearly 1.6
:08:21. > :08:22.million vehicles in the US, to replace potentially faulty air
:08:23. > :08:25.bag inflators made by Takata. The Japanese automaker said
:08:26. > :08:28.the latest recall includes some but not all models of the Corolla,
:08:29. > :08:31.Sienna, and Lexus ES manufactured Toyota said it has recalled over 4
:08:32. > :08:36.million vehicles in the American firm Coca cola has stopped
:08:37. > :08:50.producing soft drinks in Venezuela, because of a sugar shortage
:08:51. > :08:55.in the country. Sugarcane production has been
:08:56. > :08:56.falling, The company said it would continue
:08:57. > :09:00.producing sugarless drinks such The firm's announcement comes
:09:01. > :09:04.after Venezuela's biggest brewer closed ITS plants
:09:05. > :09:16.due to a barley shortage. Let's quickly show you financial
:09:17. > :09:22.markets, so you have a sense of how things are going. A mixed picture.
:09:23. > :09:25.Japan is down almost 1%. Hong Kong one third of a percent and the yen
:09:26. > :09:31.is strong at the moment, it is quite resilient. A lot of people are
:09:32. > :09:35.trading ahead of the Federal Reserve meeting in June. People are looking
:09:36. > :09:39.ahead to that now. Many are thinking maybe the Federal Reserve will raise
:09:40. > :09:43.rates and that is affecting trade around the world. That is how it
:09:44. > :09:48.ended on Wall Street last night. I will see you soon.