Shell has concluded a consultation with its largest shareholders regarding a proposed new executive remuneration policy. The plan, part of a standard three-year cycle for UK-listed companies, would significantly increase CEO Wael Sawan's potential earnings.

Proposed Remuneration Package

The key proposal is a long-term incentive stock award worth up to nine times Sawan's £1.535 million base salary. This incentive, combined with his base salary and an annual bonus of up to two and a half times salary, could result in a total pay package of up to £19.2 million annually, excluding pension contributions. This represents a substantial increase from his 2024 remuneration of £8.6 million.

Context and Comparison

Despite the proposed increase, Sawan's potential £19.2 million package would still lag behind the compensation of CEOs at major US energy counterparts. For 2024, Chevron's Mike Wirth received $32.7 million and ExxonMobil's Darren Woods received $44.1 million. Shell's final proposals will be published in March 2026 and put to a shareholder vote at the Annual General Meeting.

Company Performance Context

The report on remuneration comes as Shell prepares to announce its financial results. Analyst consensus forecasts adjusted earnings of $3.51 billion for the fourth quarter of 2025, which would be a decrease from the previous quarter's $5.43 billion and slightly below the $3.66 billion reported for the fourth quarter of 2024.