Shell CEO Wael Sawan's Pay Increase Amid Profit Decline

Wael Sawan, the chief executive of Shell, experienced a pay increase of over 60% in 2025, bringing his total compensation to approximately £14 million. This rise comes despite a 22% decline in the company's annual profits, which fell from $23.7 billion in 2024 to $18.5 billion in 2025. The increase in Sawan's pay package, which rose from £8.6 million in 2024, was largely attributed to bonuses, including a £2.7 million annual bonus and a £9.1 million share award linked to long-term business targets. This marks the first full year of Sawan's compensation as CEO, following a three-year vesting period for share awards.

The Guardian

The announcement of Sawan's pay increase coincides with rising oil prices, which briefly surpassed $100 per barrel due to escalating tensions in the Middle East, particularly related to Iranian attacks on energy facilities. This situation has raised concerns about potential increases in energy and fuel prices for consumers. Andrew Speke from the High Pay Centre criticized the substantial pay rise, suggesting that it would not be well-received by the public amid fears of rising costs linked to geopolitical conflicts.

The Guardian

Sawan's compensation places him among the highest-paid executives in the FTSE 100, although it remains lower than that of some U.S. oil executives. For instance, Darren Woods of ExxonMobil received $44 million in 2024, while Mike Wirth of Chevron earned $32.7 million. Despite the criticism, Shell's share price has risen over 30% since Sawan took the helm in 2023, reflecting a strategic refocus on fossil fuel production.

The Guardian

A Shell spokesperson defended Sawan's pay, stating that it is appropriate for his role at a major global energy company and one of the largest firms in the FTSE. They emphasized that around 80% of the CEO's target total package is performance-linked, highlighting Shell's strong financial and operational performance since Sawan's appointment.

The Guardian

Critics argue that the increase in executive compensation at Shell reflects a broader trend among FTSE 100 companies, where there is perceived leniency in executive pay amidst declining profits. The public sentiment appears to be increasingly negative towards such pay rises, especially in light of the current economic climate and rising energy prices.

The Guardian

Wael Sawan's significant pay increase at Shell, juxtaposed with the company's declining profits and rising oil prices, has sparked considerable debate regarding executive compensation practices. As the geopolitical landscape continues to evolve, the implications of such financial decisions on public perception and corporate governance remain to be seen.

The Guardian