The head of Shell's remuneration committee announced that salaries for CEO Peter Voser and CFO Simon Henry were being frozen until 2011.

In a letter to shareholders, Hans Wijers, Chairman of Shell's Remuneration Committee said it wanted to "demonstrate appropriate restraint in the current economic environment".

The company announced a major overhaul of its executive pay after a revolt by shareholders as 60% voted against a remuneration approval report regarding bonuses for top directors despite missing targets in last year's annual general meeting.

The oil giant's decision will set new limits on bonuses as from this year if they fail to meet targets management bonuses will not be awarded. In the letter Hans Wijers said, the new policies aimed to "better align remuneration policy with shareholder interests and long-term strategy".

Shell will also award bonuses based on how well projects are delivered, rather than its previous measure of total shareholder return. The Chief Executive will have to own company shares worth three times of his salary, which will better align his and company's fortunes. The company will also introduce a new individual performance element to payments which will ensure personal accountability in the system.