Shell’s chief executive has seen his pay rise more than 60% to almost £14m in 2025 despite a drop in the oil company’s profits and the prospect of a war-related rise in pump prices in the Middle East.
The package for Wael Sawan, who takes the top job in 2023 and has refocused the company on fossil fuels, rose from £8.6m in 2024 to £13.8m in 2025.
The increase, announced in the company’s annual report, sparked an immediate reaction from pay campaigners, who said people were unlikely to “look favorably” on Sawan’s pay rise given fears about another rise in energy and fuel prices linked to the US-Israel war against Iran.
Oil prices briefly climbed back above $100 a barrel on Thursday as Iran’s widespread attacks on Middle East energy facilities overshadowed a major release of government stockpiles ordered by the International Energy Agency on Wednesday.
Sawan received £1.9m in his fixed salary, pensions and benefits, but the bulk of the bumper package came from £11.8m in bonuses.
This included a £2.7m bonus for the year and a £9.1m share award linked to longer-term business objectives.
The huge pay rise came even after Shell reported a 22% drop in annual profits, with adjusted profits of $18.5bn (£13.6bn) by 2025, compared with $23.7bn in 2024, due to weaker oil prices last year.
It was the third consecutive year in which the company reported a drop in profits since it made almost $40 billion during the 2022 energy crisis.
Andrew Speke, of the High Pay Center think tank, said: “As consumers fear another rise in energy and fuel prices, this time linked to the conflict in the Middle East, few are likely to look favorably on Shell’s chief executive receiving a substantial pay rise.
“The rise appears to be part of a wider pattern among the largest FTSE 100 companies, which are showing less moderation in executive pay,” he said.
“Those in the City argue that higher wages need to be paid for British businesses to compete with their American counterparts, and there is little sign that the government intends to challenge this trend.”
Sawan’s package will rank among the highest in Britain’s FTSE 100 group of blue-chip companies.
Last year, the current and former chief executives of engineering company Melrose Industries, Peter Dilnot and Simon Peckham, were the highest paid in the FTSE 100. They took home almost £59m between them, mainly thanks to long-term incentive plans.
Pascal Soriot, chief executive of pharmaceutical company AstraZeneca, who spent the previous two years as the highest-paid boss in the FTSE 100, came third after earning £14.7m. However, it could soon return to the top spot.
Sawan’s salary remains much lower than that of American oil executives. Darren Woods, the head of ExxonMobil, received $44 million in 2024. Mike Wirth, the head of Chevron, received $32.7 million.
Since Sawan became CEO in 2023, he has refocused Shell on its fossil fuel production, and its share price has since risen more than 30%.
Shell shares have also risen in recent weeks as the Iran war caused global oil prices to rise. International benchmark Brent crude rose back above $100 a barrel on Thursday, although it trimmed some of its gains, up 6% to around $98.
A Shell spokesperson said: “The CEO’s remuneration is commensurate with his position at a major global energy company and one of the largest companies on the FTSE.
“Around 80% of the CEO’s total target package is linked to performance. Since taking over as CEO in early 2023, Shell has delivered strong financial and operational performance and outperformed peers with total shareholder returns of 19% annually.”
