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The boss of Shell was paid nearly £8m last year, new figures showed on Thursday as the oil and gas giant watered down one of its climate pledges.
Wael Sawan was handed a total pay packet worth £7.94m during the period, Shell said, a reduction from the £9.7m that his predecessor Ben van Beurden earned in 2022, although higher than Mr van Beurden’s pay package for 2021.
Mr Sawan’s package included a base salary of £1.4m, an annual bonus of £2.7m and a £2.6m long-term incentive payment.
The UK-based energy giant also watered down one of its climate ambitions, saying it was focusing on “value over volume” in the electricity sector.
Wael Sawan is chief executive officer at Shell
(Shell)
The oil major said that it now wants to reduce the “net carbon intensity” of the energy products it sells by 15-20 per cent by 2030, compared to its previous 20 per cent target. The target is measured against 2016.
The business explained the changed target by saying it is now planning to focus more on selling electricity to business customers, rather than households. This means that its electricity sales will not rise as rapidly as previously thought by 2030, slowing the rate at which the carbon intensity can be cut.
Last week BP, another UK headquartered oil and gas giant, revealed that its new boss was paid more than £8m in the last financial year before he took over the top job full time.
Murray Auchincloss’s pay package consisted of more than £1.5 million in salary, benefits and cash in lieu of pension. He was also handed a £1.8 million bonus, and a little under £4.7 million in shares that were linked to performance.
Mr Auchincloss was chief financial officer for most of 2023, but took over as interim chief executive in September when his predecessor stepped down.
Meanwhile Shell set a new ambition to reduce the emissions that are produced when customers use its oil products by 15-20 per cent by 2030 compared to 2021, a part of so-called Scope 3 emissions.
Last month The Independent revealed that some of the biggest energy companies operating in the UK raked in “eye-watering” profits of more than £1bn a week across the globe as millions of Britons struggled with the cost of living squeeze.
Shell, Equinor, ExxonMobil and BP – some of the UK’s biggest suppliers of gas – made £65bn in net profits in 2023, leading campaigners to accuse the multinational firms of “stoking the energy bills crisis”.
