Shell has revealed that chief executive Wael Sawan received a 9% pay rise last year—despite a sharp fall in profits—taking his total remuneration to £8.6 million.
The energy giant made the disclosure in its annual report ahead of a capital markets day, where it also set out a new five-year plan to significantly cut spending and ramp up returns for shareholders.
Sawan’s 2024 pay package included a £2.9m annual bonus and £3.9m in long-term share awards. His base salary also rose 3.9% to £1.45m in 2024, with a further increase to £1.54m already agreed for 2025. Shell said the wider workforce received a 5.5% salary rise.
The pay increase comes despite the company posting a 16% drop in annual profits—down to £18.4bn from £21.9bn the previous year.
Campaign group Global Witness criticised the bonus as “obscene”, describing it as a “slap in the face” to people facing soaring energy bills and highlighting the firm’s continued investments in fossil fuels. “It’s maddening to know that Big Oil bosses like Sawan are raking it in, as they double down on the oil and gas that’s fuelling climate devastation,” said investigations lead Patrick Galey.
Meanwhile, Shell unveiled plans to deliver £3.9bn to £5.4bn in annual savings by 2028—more than doubling previous targets. The firm also committed to slashing capital expenditure to between £15.5bn and £17bn a year over the next three years.
Efficiencies will be driven by the wider use of AI, tighter procurement processes, and reduced reliance on contractors—already down by 30% since 2023. Shell’s global workforce also shrank by 7% last year to 96,000, including reductions in its portfolio companies.
The company pledged to increase shareholder returns through share buybacks and dividend payouts, and also laid out ambitions to grow its LNG sales by 4–5% annually through to 2030.
Sawan said Shell would become the “world’s leading integrated gas and LNG business,” stating: “Today we are raising the bar across our key financial targets, investing where we have competitive strengths and delivering more for our shareholders.”
Despite those ambitions, the group has faced scrutiny for weakening its environmental targets. In 2023, Shell scrapped its interim goal of reducing net carbon intensity by 45% by 2035, instead maintaining a broader aim of achieving net zero emissions by 2050.
The company said it would invest between £1.5bn and £2.3bn in its renewables and energy solutions division over the next three years. By 2030, up to 10% of Shell’s total equity and debt is expected to be directed toward lower-carbon businesses.
Shell also warned it may shut down some of its European chemicals operations as part of wider cost-saving efforts. While no UK sites are affected, the company said it would explore “strategic and partnership opportunities in the US” to expand operations.
Chief financial officer Sinead Gorman reiterated the company’s focus on balancing financial performance with long-term energy transition goals, adding: “We are leveraging technology and disciplined spending to deliver real value—while positioning Shell for a lower-carbon future.”
