Oil and gas giant Shell (LON: SHEL) has announced plans to shrink its executive committee in a bid to simplify “how the organisation works”.
Expected to take effect on July 1, the London-listed company’s board will reduce from nine to seven members as it seeks to improve performance and deliver the powering progress strategy.
Under the changes, Shell’s integrated gas and upstream businesses will be combined to form a new integrated gas and upstream directorate.
It ill be led by current upstream director, Zoe Yujnovich.
Shell’s downstream business will be combined with renewables and energy solutions to form a new downstream and renewables directorate, headed up by current downstream director, Huibert Vigeveno.
© Supplied by ShellSeparately, the strategy, sustainability and corporate relations (SSCR) directorate will be discontinued.
Its lead Ed Daniels will step down from the executive committee effective from July 1, and leave group service thereafter.
Shell has thanked Mr Daniels for “distinguished service over more than 34 years and wish him well for the future”.
Strategy will be brought together with new business development and, alongside sustainability, will report direct to Sinead Gorman, chief financial officer.
The aim is to enable more streamlined planning and better capital allocation decisions.
Corporate relations will report direct to chief executive Wael Sawan, who took over the reins from Ben van Beurden at the start of the year.
© ShellThis announcement comes ahead of the publication of Shell’s full year results for 2022 on Thursday.
Mr Sawan said: “I’m making these changes as part of Shell’s natural, and continuous, evolution. Our core purpose is to provide energy to our customers, safely and profitably, while helping them, and us, to decarbonise.
“I believe that fewer interfaces mean greater co-operation, discipline and speed, enabling us to focus on strengthening performance across the businesses and generating strong returns for our investors.
“Shell is a great company and we’re changing to ensure we become a great investment too. Simplifying how the organisation works, in pursuit of higher performance, is critical to achieving that.”
Last week Shell raised questions about the future of its energy supply business, which employs thousands of people in the UK.
Shell said it will launch a “strategic review” of Shell Energy, including its operations in the UK, the Netherlands and Germany.
Launched in 2008 as First Utility and bought a decade later by the oil major, Shell Energy employs around 2,000 people in the UK.
It supplies energy to around 1.4 million homes across the country and broadband to around half a million customers.
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