Shell CEO’s pay jumps 60% despite slump in oil firm’s profits | Shell
Shell’s chief executive has seen his salary rise by more than 60 per cent to almost £14 million in 2025, despite a slump in the oil company’s profits and expectations that pump prices will rise due to the war in the Middle East.
Wael Sawan’s package, which takes the top spot in 2023 and refocuses the company on fossil fuels, rises from £8.6m in 2024 to £13.8m in 2025.
The increase, revealed in the company’s annual report, triggered an immediate backlash from pay campaigners, who said people were unlikely to “look positively” on Sawan’s pay rise given fears of another rise in energy and fuel prices linked to the US-Israeli war on Iran.
Oil prices briefly rose above $100 a barrel on Thursday as Iran’s widespread attacks on energy facilities in the Middle East eclipsed the large amount of government reserves the International Energy Agency cited on Wednesday.
Sawan received £1.9 million from his fixed salary, pensions and benefits, but most of the big package came from bonuses of £11.8 million.
This included a £2.7 million bonus for the year and a £9.1 million share award linked to long-term business objectives.
The big pay rise comes even after Shell reported a 22% fall in annual profits, with adjusted earnings for 2025 at $18.5bn (£13.6bn) from $23.7bn in 2024, due to weak oil prices last year.
This is the third year in a row that the company has reported falling profits since making almost $40 billion during the 2022 energy crisis.
Andrew Speke, of the High Pay Center think tank, said: “As consumers fear a rise in energy and fuel prices, this time linked to conflict in the Middle East, few people are likely to be positive about Shell’s CEO receiving a significant pay rise.
“The increase appears to be part of a wider pattern among the largest FTSE 100 companies showing less restraint on executive pay,” he said.
“Those in the city argue that higher pay is necessary for British firms to compete with their US counterparts, but there is little sign that the government intends to buck the trend.”
Sawan’s package will be among the highest in the FTSE 100 group of Britain’s leading companies.
Last year, Peter Dilnot and Simon Peckham, current and former chief executives of engineering company Melrose Industries, were the highest-paid people in the FTSE 100. Between them they earned almost £59 million, mostly due to their long-term incentive plans.
Pascal Soriot, chief executive of pharmaceutical company AstraZeneca, who spent the previous two years as the FTSE 100’s highest-earning boss, moved into third place after earnings of £14.7 million. However, it may return to the top in a short time.
Sawan’s salary is still much lower than that of US oil executives. ExxonMobil boss Darren Woods was paid $44 million in 2024. Chevron’s boss, Mike Wirth, was paid $32.7 million.
Since Sawan became CEO in 2023, he has refocused Shell on fossil fuel production, whose share price has risen by more than 30%.
Shell’s shares have also risen in recent weeks as the Iran war triggered a rise in global oil prices. International benchmark Brent crude rose back above $100 a barrel on Thursday, but pared back some of its gains, rising 6% to around $98.
A Shell spokesman said: “The CEO’s salary is commensurate with his position at a major global energy company and one of the largest companies in the FTSE.
“Approximately 80% of the CEO’s target total package is linked to performance. Since taking over as CEO at the beginning of 2023, Shell has delivered strong financial and operational performance, outperforming peers with total shareholder returns of 19% per annum.”
