In a significant development for corporate Britain, the chief executive of energy giant Shell is reportedly poised to receive a substantial multimillion-pound pay increase, according to exclusive reports from Sky News.
Details of the Proposed Remuneration Package
Wael Sawan, who has led Shell since 2023, would see his annual compensation boosted by at least £4.5 million under a new boardroom pay policy that the company is expected to unveil shortly. This substantial increase would be delivered through a long-term incentive stock reward scheme, dramatically enhancing his current base salary of £1.5 million.
Potential Total Earnings and Performance Conditions
Over the long term, with sustained "significant outperformance," Sawan's total annual pay could surpass £13.8 million. Furthermore, an additional bonus package worth up to £3.8 million could elevate his overall remuneration to as high as £19.2 million annually.
This revelation comes as Shell prepares to announce its fourth-quarter and full-year financial results on Thursday morning. The timing is particularly noteworthy given that in May last year, the company declared plans for a substantial £19 billion payout to its shareholders.
Context Within FTSE 100 Executive Pay
If implemented, this revised pay structure would position Shell's chief executive compensation among the highest echelons of FTSE 100 companies. In 2025, Sawan received an £8.6 million pay package, while the company's finance chief, Sinead Gorman, was paid £7.3 million.
According to investor sources cited by Sky News' Mark Kleinman, shareholders are broadly supportive of this move, provided there is "clear evidence of pay for performance" linking remuneration directly to corporate achievements.
Contrast With Industry Rivals and Broader Concerns
This proposed pay boost stands in stark contrast to developments at BP, Shell's main rival in the energy sector. Last year, BP's chief executive, Murray Auchincloss, took a pay cut of more than £2.3 million following a significant reduction in company profits.
The reports of Shell's generous pay package emerge amid growing anxieties about executive compensation levels within London's financial district, known as the Square Mile. Currently, the pay differential between a FTSE 100 chief executive and the median British worker stands at 122-fold.
However, this gap appears modest when compared to the United States, where the multiple between S&P 500 chief executives and median workers reaches 285 times.
Executive Tenure and Stability Considerations
According to research from the Russell Reynolds CEO Turnover Index, chief executive tenures across FTSE 250 companies are among "some of the shortest globally," averaging less than five years. The research describes these tenures as "the lowest we have recorded since we began tracking," highlighting potential instability in British corporate leadership.
This context makes Shell's proposed long-term incentive structure particularly significant, as it may represent an attempt to retain top executive talent through substantial financial rewards tied to sustained performance.
