Shell CEO Nets £13.8M Amid Profit Slump & Price Fears

Shell's chief executive, Wael Sawan, received a substantial pay package totaling £13.8 million last year. This figure represents a 60% increase compared to the previous year, despite a reported drop in the oil giant's profits. The payout has ignited controversy, with critics raising concerns about potential escalations in energy and fuel costs.

The financial situation at Shell saw underlying earnings fall to £13.6 billion, with a significant 40% decline in the final quarter. This performance occurred while oil prices neared $100 a barrel, driven by supply disruption fears, which conversely boosted oil major shares. Shell's shares have seen a 6% increase since the conflict in the Middle East began.

Sawan's compensation included a £1.9 million fixed salary, pension, and benefits, supplemented by £11.8 million in bonuses. This bonus component comprised a £2.7 million annual bonus and a £9.1 million share award tied to long-term performance metrics. Finance chief Sinead Gorman also saw her total pay increase to £8.5 million.

In response to shareholder feedback, Shell intends to revise its executive remuneration policy. Starting this year, executive pay will be benchmarked against global companies in critical sectors like AstraZeneca and Boeing, rather than solely against European competitors and other energy firms. This strategic shift aims to align executive compensation with broader global industry standards.