Shell boss's 'gardening leave'

WAS Sir Philip Watts' fondness for gardening an unexpected factor in his sudden departure as chairman of Shell? That is the theory circulating in the City after his sudden ousting on Wednesday.

Shell's shock downgrade of its oil reserves came on Friday, 9 January. Watts, who worked long hours and had a punishing travel schedule, occasionally took Friday off to relax on a long-term gardening project at his country home.

Shell said: 'We would not comment on our managing directors' movements at any time. This guy worked pretty damn hard.'

Watts was criticised for not handling the reserves disclosure himself. Last month he admitted this was a mistake and apologised.

Shell said he was asked to resign after its audit committee 'reviewed the facts and circumstances surrounding the January 9 announcement'.

The wording sparked fears that further reserve shocks might emerge after January's 3.9bn barrel downgrade.

Exploration chief Walter van de Vijver, who was ousted with Watts, was apparently held responsible for not coming to grips with the issue earlier and for the way the crisis was handled.

In an effort to end uncertainty, new chief executive Jerome van der Veer disclosed that Shell's internal audit of reserves would be concluded in two weeks.

It has hired US lawyers Davis Polk to help the audit - possibly a defensive move as US watchdog the Securities and Exchange Commission probes its reserve figures.