2022AGM – Jane Thompson of SLB on Pension Upgrade

[Johannes Wijsman]

For those of you that did not attend or watch the recording of the 2022 AGM, here is a recap of what Jane Thompson (SLB) had to say about a possible pension upgrade.

“SLB management acknowledges concerns about the current high inflation, although with a very wide geographic spread of ISPP retirees the effects are quite different. Upgrades have always been at the discretion of the company and the last one was in 2010. No further upgrades since then due to financial concerns. Due to a realignment of corporate goals no further upgrades are envisaged for the foreseeable future and it is possible there may never be another one. Funds are simply not available.”

The latter statement is, of course, complete rubbish. For the first nine months of 2022 SLB generated $2.7 billion of cash flow from operations of which $700 was spent on capex. The remaining $2 billion was used to pay dividends ($525 million) and to pay down debt. Management simply prefers to spent money on other things than on its retirees. I find this whole issue of just giving us the finger quite shameful for a company with the stature of SLB.

• This topic was modified 3 years, 10 months ago by Johannes Wijsman.
• This topic was modified 3 years, 10 months ago by Johannes Wijsman.

[Charles Ingold]

If we have inflation at 10% a year for the next 6 years, what will happen? Besides, real inflation based on real products (not TV or computers) is above 10%.

[Charles Ingold]

Someone said to convey the message that we were unhappy (about the frozen pensions). In my case I feel simply betrayal. Last year the message was: There is no money
This year the message is: 98 % of the companies do not adjust pensions
Other comments include: Inflation is not the same everywhere, exchange rate is very favorable etc..
There is no more profit sharing for active employees
Regular employees have not had cost of living adjustments in years etc..
All I can say is this: A company, a society or a country that does not respect the elderly will go down

I would not advise my grand son to work for SLB.
If in the next 5 years inflation is at a constant 6% and the euro goes back to just 1.45 USD, we will lose another 50%.
The average life span of a retiree is about 20 years. Do you know what 6% inflation will do in 20 years? If the funds were fully backed 13 years ago how come these funds are just backed at 101 % today? Is it mismanagement or lack of interest?

And what about “ethics”?

I would just like to know where the needle is and what it will take to even have 1% raise in our pensions.

[El Hachemi Abdelhak]

The ISPP Plan rule clearly says that “The company decides periodic reviews and re-evaluations”

https://slbmrp.clarityglobal.com/sites/default/files/slb/mrp/files/Age_55_and_Age_60_ISPP_Plan_Rule.pdf

XI. Review of Annual Benefits
SLB conducts periodic reviews of the annual benefit levels of those who have retired,and may
update these annual benefits from time to time.
SLB also reviews the accrued annual benefits of active participants and may decide to adjust the
accrued annual benefit of the participants still employed by SLB at the date
of such revision.
No automatic form of indexation is guaranteed. The Company, whenever deemed necessary and
affordable decides periodic reviews and revaluations of the annual benefit levels

[Charles Ingold]

In the last 14 years, US social security retirement has been increased by 38% and is still probably below inflation. So, even if deemed necessary, nothing will happen as long as it is not affordable.

[David Baillie]

Have to agree with all of the above posts.

The funds involved consist of the contributions made by the Employee and that of the Company , ( they are not solely company funds).

Before Andrew Gould left he had the good grace to top up the pension fund, at which point it was 100% funded. The management from that point onward has been a farago . All other oilfield srvice international pension funds (Halliburton , Baker Hughes , GE etc ) have more than recovered from the great financial crisis and Covid .

The performance of the fund is unrelated to how SLB performs , yet this is repeatedly used as the reason there would be no increase ; then when the SLB performance is excellent , the excuse is that the markets are down etc etc . It is so facile that it is embarrassing and I feel for the poor junior manager who is forced to present this at the yearly review. How ashamed he must be made to feel by this transparent attempt to absolve responsibility for the failure of his predeccessors and the policy of his current management .

We trusted the Company to manage our contributions in a responsible way and in accordance with the rules that were set out by the Company. This has not happened and the Company has now made the outright statement that it has no intention of doing so.

There is now a Breach of Trust between the Company and the Retirees.

In this cicumstance the correct action is for the Company to wind down the Fund as quickly as possible in an orderly manner. This will be better for the Retirees and the Company. The retirees will recieve their funds and the Company will no longer have to maintain the false illusion that they have any intention of fulfilling their abandoned responsibility with the consequent negative
effect on the Company reputation .

• This reply was modified 2 years, 8 months ago by David Baillie.

[Charles Ingold]

Just Facts:
In the last 14 years the US social security retirement was adjusted every year but for two years (2010 and 2015)
In 2024 the us social sec. retirement will be adjusted by 3.8 %
Since 2010 this means a cumulative increase of 45%
In just 4 months, we will reach 14 years with zero adjustment.

I feel sorry for those who placed their provident fund into their retirement.

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