Seismic Shift Leaves Chairman Wondering Watts It All About

The HeraldMarch 04, 2004

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Summary


WHEN the Royal Dutch/Shell group astonished markets and investors on January 9, suddenly slashing estimates of its proven reserves by nearly a fifth (3.9 billion barrels), chairman Sir Philip Watts assured his 115,000 staff around the globe by e-mail that he remained "committed to the full resolution of this issue as soon as possible".

As Shell's share price plunged 7%, Watts took most of the ensuing flak for failing to turn up to announce the shock revision personally. Less than a month later, on February 5, Watts did show for Shell's annual results.

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Extract


Seismic Shift Leaves Chairman Wondering Watts It All About

But first he delivered a fulsome, unqualified apology for getting the announcement of the reserves downgrade so disastrously wrong. "It was a mistake. I am sorry," he said.

Such an act of public contrition could not have come easi...

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