Every so often, a company tries to send a message of confidence by making its executives literally pay for it. Pilipinas Shell is doing exactly that. Beginning in 2026, Shell will require its top executives to personally buy one hundred thousand shares each. No grants. No freebies. No stock awards. They must open their own wallets.
On the surface, the move sounds bold. It tells the public that the people running the company believe in the company. It creates the impression of alignment and accountability. It gives shareholders the comfort of knowing that the losses they carry are now also carried by management.
But here is the uncomfortable truth. Shell’s problem is not the alignment of its executives. Shell’s problem is the architecture of its business. No amount of executive buying will fix a model that was weakened the moment the Batangas refinery shut its doors.
That refinery was not just a facility. It was Shell’s backbone. It gave the company margin flexibility, supply security, and a diversified source of revenue. Without it, Shell became a pure importer, stuck in the lowest margin segment of the petroleum chain. Today, it competes against independent players that can undercut prices and build stations faster than the old multinationals. Retail fuel is a knife fight. And Shell entered the arena with fewer weapons than before.
So yes, make executives buy shares. Make them feel the burn that investors have endured for almost a decade. But let us be blunt. The act of buying shares does not restore lost competitive advantages. It does not create new value. It does not magically elevate margins in a sector where price is the only real differentiator.
If Shell truly wants to restore confidence, here is what it must do beyond asking executives to buy stock.
First, Shell must build a real energy transition strategy. Not a brochure. Not a slogan. A real plan. The global Shell brand is already doubling down on renewables, low carbon technologies, and mobility solutions. The Philippine unit must stop acting like it is trapped in a time capsule. Without new businesses, investors will continue to see Shell as a shrinking company pretending to grow.
Second, Shell needs to create new revenue engines. Fuel retailing alone cannot carry the company. It must expand into electric vehicle charging networks, distributed energy systems, solar and storage solutions for commercial clients, and modern mobility services. These are not dreams. These are necessities. Every major competitor is already moving in this direction.
Third, Shell must rebuild its supply strength. Without a refinery, Shell must find ways to diversify supply chains, lock in long term contracts, and manage volatility smarter than before. It can no longer absorb price swings the way a vertically integrated company can. That means better hedging, more agile procurement, and partnerships that add resilience.
Fourth, Shell must rethink its retail model. Stations cannot survive as fuel pumps alone. They must become service hubs, retail centers, logistics micro nodes, charging points, and community venues. Retail growth is not about selling gasoline. It is about building ecosystems that outlive gasoline.
Fifth, Shell must embrace radical transparency. Investors do not punish Shell because they dislike the brand. They punish Shell because they do not see a future worth paying for. Share visibility is commendable, but strategy visibility is far more important.
The executive share purchase policy is a nice gesture. A symbolic show of faith. A small signal that the people in charge are willing to feel what investors feel. But symbols are not strategy.
Shell’s real challenge is not convincing the market that management is committed. The real challenge is convincing the market that Shell has a path forward in an energy landscape that is transforming faster than the company can react.
Until Shell solves that, the stock will remain exactly where it has been for nine long years. At the bottom of its IPO history, waiting for a company once known for leadership to rediscover the courage to lead again.