Shell CEO’s compensation rises as company pledges higher investor returns through cost efficiencies.

Shell opened up its CEO Wael Sawan’s compensation to £8.6 million in 2024, which is 9% higher than £7.9 million in 2023 even as the profit declined by 16%. This was revealed in the company’s annual report which was submitted to the company before its capital market day for shareholders. Sawan’s package included a £2.9 million bonus and £3.9 million long term share awards even as Shell posted a 16% profit decline to $23.7 billion (£18.4 billion) from $28.3 billion (£21.9 billion) in 2023. Its January results also showed that the upstream business brought in $12.4 billion, down from $15.9 billion in 2023. Gas and renewables contributed $11.3 billion, up from $9.9 billion.

Sawan’s annual salary increased by 3.9% to £1.45 million in 2024 and then increased again by 5.5% to £1.54 million in 2025. The report also pointed out that the matching 5.5% pay hike for the broader workforce.

Along with the information on executive compensation, Shell revealed its new five-year plan to decarbonize and create value for shareholders. The London-based oil major now aims to cut $5 billion to $7 billion (£3.9 billion to £5.4 billion) in annual costs by 2028, from its previous aim of $2 billion to $3 billion (£1.5 billion to £2.3 billion) by 2025. The company has already realized more than $3 billion (£2.3 billion) of cost reductions, with the number of its employees decreasing by 7% to 96,000 including staff at portfolio companies.