Shell Board proposes to raise CEO pay package

Shell's annual reports shows that the board will ask shareholders at its May 19 meeting to "increase the maximum compensation package for the CEO" in order to align incentives with peers who operate in similar industries and geographies. Shell's annual report revealed that CEO Wael Sawan will receive a pay package of 13.8 million pounds (18.47 million dollars) in 2025, compared to 8.6 million pounds the previous year. This is because he can now access the full CEO policy after taking over the reins in 2023.

Shell's recent total shareholder return was higher than that of its peers. The board proposes that the CEO's pay be increased by a half by increasing the performance share award target to 450%. The maximum is 90%.

The report stated that "the proposed quantum change" moves the CEO's total compensation from the 25th percentile down to the median pay group. Shell's $18.5 billion annual profit?in 2018 was more than a 5th below the 2024 figure due to lower oil prices, trading and chemicals results and a slower pace of dividends. However, it maintained its share buyback program and dividends. Sawan's pay is based on shareholder distributions made over a 3-year remuneration period.

The report stated that the total pay would have been higher if there had not been four fatal accidents in Argentina Malaysia and Britain during the last year.

(source: Reuters)