Shell’s CEO, Wael Sawan, has received a staggering 60% increase in his pay, bringing his total compensation to £13.8 million for the year 2025. This significant pay rise comes at a time when the company reported a considerable drop in profits.
Declining Profits and Rising Executive Pay
Shell’s annual report indicates that the company’s adjusted earnings fell to $18.5 billion in 2025, down from $23.7 billion in the previous year, representing a 22% decline. Despite this downturn, Sawan’s remuneration increased sharply, primarily driven by performance-related bonuses and long-term share incentives.
Details of the Compensation Package
- Annual Bonus: £2.7 million
- Long-Term Share Incentives: £9.1 million
- Base Salary and Additional Benefits: Totaling £13.8 million
This means Sawan earned approximately £37,800 per day in 2025, comparable to the annual salary of an average UK worker.
Shareholder Satisfaction Amidst Climate Concerns
Defenders of Shell argue that shareholders are satisfied with this compensation structure. Since Sawan assumed the CEO role in 2023, the company’s share price has increased by over 30%. This growth has largely been attributed to aggressive cost-cutting measures and a renewed focus on fossil fuel production.
Shift in Company Strategy
Under Sawan’s leadership, Shell appears to be moving away from its earlier commitments to become a broader energy transition company. Instead, the focus is now on oil and gas, including:
- Multi-billion-dollar share buybacks
- Increasing dividend payouts
- Reducing investments in low-carbon divisions
This strategy has proven favorable for major asset management firms, including BlackRock, Vanguard, and State Street, which dominate Shell’s shareholder base.
Criticism from Climate Campaigners
The pay increase for Shell’s CEO has drawn sharp criticism, particularly from climate advocates. Patrick Galey of Global Witness labeled such compensation as “obscene,” especially against the backdrop of extreme weather events and urgent calls for reduced fossil fuel dependence.
Comparative Executive Compensation
Shell’s executive compensation, although significant, is relatively lower compared to its American counterparts. For instance, ExxonMobil’s CEO received $44.1 million in 2024, and Chevron’s CEO earned $32.7 million. However, many still view Shell’s pay package as excessive, particularly during a period of declining profits and geopolitical tensions affecting oil markets.
The Underlying Corporate Logic
The rationale for such high executive pay within the oil industry is clear: compensation is closely tied to shareholder returns and stock performance rather than environmental sustainability. As long as fossil fuel demand continues, it seems that oil executives, including Sawan, will prosper, leaving the future of the climate in question.
