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Telecommunications equipment industry

Royal Dutch Shell Names Nokia's Jorma Ollila as Chairman, Replacing Aad Jacobs

Strategic Insights

— 1 min read

A significant leadership change has taken place in the oil industry, with Royal Dutch Shell appointing Jorma Ollila, the outgoing Nokia chief executive, as its new chairman. Ollila will replace Aad Jacobs, and his appointment marks a further step in the restructuring of the company following last year's reserves over-booking scandal. Ollila's selection comes after a thorough process that included executives from the US, Britain, the Netherlands, and elsewhere in Europe. He will take up his new role in June next year and will serve for three years.

Key Takeaways:

  • Jorma Ollila, the outgoing Nokia chief executive, has been appointed as the new chairman of Royal Dutch Shell, replacing Aad Jacobs.
  • Ollila's appointment marks a further step in the restructuring of the company following last year's reserves over-booking scandal.
  • Ollila was selected after a thorough process that included executives from the US, Britain, the Netherlands, and elsewhere in Europe.
  • He does not have oil industry experience but his international experience and global environment knowledge have been highlighted as assets in his appointment.
  • The 54-year-old Finn was instrumental in turning Nokia from a sprawling conglomerate into the world's leading manufacturer of mobile phones.
  • Ollila will take up his new role in June next year and will serve for three years.
  • His predecessor, Aad Jacobs, will remain in the non-executive role until June next year.
  • The appointment of Ollila is seen as a change in guard, with his predecessor, Lee Raymond, announcing his retirement.
  • Raymonds' legacy has been marked by his scepticism about global warming and his opposition to the Kyoto protocol.

Statistics:

  • Royal Dutch Shell is restructuring after last year's reserves over-booking scandal.
  • The scandal led to a password-protected email containing questions about oil reserves being discussed among company officials that revealed the scale of the reserves over-booking.
  • The company has identified 4.0 billion barrels of oil reserves that were overstated by 4.3 billion barrels.
  • The announcement has caused widespread concerns among investors and environmentalists.
  • Exxon Mobil, led by Lee Raymond, has been a vocal opponent of the Kyoto protocol aimed at reducing emissions.
  • The company's market value is over $82 billion.

Sources:

  • Royal Dutch Shell press release, no specific date
  • guardian.co.uk/oil
  • "Nokia appoints Nokia Solutions and Networks as new company name" Helsinki, 8 April 1998
  • Companies' corporate homepages

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