Shell's chief executive, Wael Sawan, has seen his total remuneration package increase dramatically to £13.8 million for the 2025 financial year, a rise of almost 60% compared to the previous period. This substantial pay jump comes despite the FTSE 100-listed oil and gas giant reporting a significant decline in its annual profits.
Bonus Payments Dominate Compensation
Mr. Sawan's fixed salary, pension, and benefits for the year amounted to £1.9 million. However, this base compensation was heavily overshadowed by bonus payments totalling approximately £11.8 million. The bonus structure included a £2.7 million annual bonus and a substantial £9.1 million share award, which is linked to the company's longer-term performance targets.
Finance Director Also Sees Pay Increase
The group's finance chief, Sinead Gorman, similarly received a boosted pay deal. Her total remuneration rose to £8.5 million for 2025, up from £7.25 million the year before. These enhanced executive pay packages were confirmed in Shell's recently published annual report.
Profits Fall as Pay Rises
The elevated compensation figures stand in stark contrast to the company's financial performance. Shell reported a worse-than-anticipated 22% plunge in annual profits for 2025. Underlying earnings, which exclude certain commodity-price adjustments and one-off charges, dropped to $18.53 billion (£13.6 billion).
The final quarter of the year was particularly challenging, with a sharp 40% quarter-on-quarter decline in earnings. This profit downturn reflects broader market volatility and operational pressures within the energy sector.
Shareholder Vote on Pay Policy Ahead
Concurrently, Shell has outlined proposals to overhaul its executive remuneration policy. Shareholders will have the opportunity to vote on these new proposals at the company's annual general meeting, scheduled for May. A Shell spokesman clarified the process, stating, "Every three years, Shell seeks shareholder approval for a new executive director remuneration policy as a standard part of regulations for UK listed companies. The last vote was in 2023, so this is part of the usual cycle."
The spokesman added, "The proposals have been published in the 2025 annual report today and will be voted on at the AGM (annual general meeting)." This vote will place the spotlight on corporate governance and the alignment of executive rewards with company performance during a period of declining profitability.
