Four sources familiar with the case said German energy majors Sefe and Uniper (UN01.DE) had rewarded some traders millions of euros in bonuses for 2022, just months after the companies were saved with multi-billion bailouts when Russia suspended gas deliveries.
After Sefe and Uniper made record losses by buying natural gas cargoes at record prices to replace lost supply from Russia, Germany’s primary gas supplier before the invasion of Ukraine, Germany supplied about 26 billion euros ($28.6 billion) in equity injections and loans.
Bailed-out energy companies need to be competitive, but awarding bonuses raises doubts about government money.
The bailouts required Sefe (Securing Energy for Europe) and Uniper to limit management board salaries, although bonus caps did not apply to all employees.
One source said 200 of Sefe’s London traders had received hundreds of millions in incentives, including $5 million-$7 million for mid-level dealers. Two others alleged Sefe and Uniper received large subsidies.
Sefe, the former German division of Russia’s Gazprom (GAZP.MM), said its employees’ performance warranted remuneration that rewards security of supply without revealing details.
“This keeps Sefe competitive in the human resources market to be able to procure gas and hydrogen for the German market in the future,” the company said in an email, adding that 2021 personnel costs were 330 million euros.
Uniper confirmed that trading workers received 2022 incentives below the previous year’s. Energy traders compete fiercely. “A zero bonus is inappropriate,” the business argued.
Vitol and Trafigura, who profited from price instability after Russia invaded its neighbor, compete with dealers for billions of dollars in annual profit.
Traders often make more than company CEOs since they are paid a portion of their trading book profits. Last year, BP CEO Bernard Looney made $12 million.
Germany’s Economy Ministry, which oversees Berlin’s ownership of Sefe, said European Commission remuneration rules are important, and only the company can comment on how they are being satisfied.
The Finance Ministry, which owns Uniper, forwarded queries on operating matters, including staff pay to the company.
According to Sefe’s website, its London trading branch employs 830 people, while Uniper’s global trading section employs 1,400.
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