Shell’s New CEO Nets £8 Million in First-Year Compensation
Shell’s newly appointed CEO, Wael Sawan, has garnered attention with a hefty pay package of nearly £8 million in his inaugural year, as disclosed by the energy giant. This revelation coincided with Shell’s revision of one of its carbon reduction targets.
Sawan’s total compensation amounted to £7.94 million, inclusive of bonuses, though it fell short of the £9.7 million received by his predecessor, Ben van Beurden, in 2022. Despite this, the magnitude of Sawan’s pay package has drawn criticism from advocacy groups.
Jonathan Noronha-Gant, a senior campaigner at Global Witness, lambasted the exorbitant sum, labeling it as “a bitter pill to swallow for the millions of workers grappling with the soaring costs of energy.”
In tandem with the disclosure of Sawan’s compensation, Shell unveiled adjustments to its carbon reduction strategy. Previously aiming for a 20% reduction in “net carbon intensity” by 2030, Shell has now revised the target to a range of 15-20%. Additionally, the company abandoned its objective to achieve a 45% reduction in net carbon intensity by 2035, citing uncertainties surrounding the pace of the energy transition.
This shift in strategy reflects Shell’s pivot towards prioritizing “value over volume,” with a renewed focus on supplying electricity to business clients rather than households. Furthermore, Shell has set a fresh goal to curtail customer emissions resulting from the use of its oil products by 15-20% by 2030.
This move echoes similar maneuvers made by rival energy giant BP, which announced last year a scaling back of its carbon emissions reduction plans. BP’s CEO, Murray Auchincloss, also received a substantial pay packet exceeding £8 million in the previous year.
The sizeable remuneration packages awarded to executives in the energy sector have sparked scrutiny, particularly in light of the industry’s windfall profits following the surge in oil and gas prices spurred by Russia’s invasion of Ukraine.
Andrew Speke, spokesperson for the High Pay Centre, criticized Shell’s priorities, accusing the company of placing greater emphasis on enriching executives and shareholders over addressing excessive executive pay. Speke emphasized the urgent need for reforms in company law to compel entities like Shell to tackle the issue of exorbitant executive compensation.
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