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On Thursday, it was revealed that the CEO of Shell earned a salary of almost £8 million last year, but the company also weakened one of its promises related to climate change.
Wael Sawan was handed a total pay packet worth £7.94m during the period, Shell said, a reduction from the £9.7m that his predecessor Ben van Beurden earned in 2022, although higher than Mr van Beurden’s pay package for 2021.
Mr Sawan was given a total compensation package of £1.4m in base salary, £2.7m in annual bonus, and a long-term incentive payment of £2.6m.
Activists expressed concerns over his salary, which is roughly 227 times greater than the average income of workers. They see it as a hard pill to swallow for the millions of individuals struggling with the expensive energy prices.
The energy company in the United Kingdom has revised one of its environmental goals, stating that it now prioritizes “value” rather than “volume” in the realm of electricity.
The energy company announced a new goal to decrease the “net carbon intensity” of its sold energy products by 15-20 percent by 2030, in contrast to its previous aim of 20 percent. This target will be measured from a base year of 2016.
The company clarified the revised goal by stating that it will shift its attention towards selling electricity to business clients instead of households. As a result, the projected growth of electricity sales by 2030 will be slower than previously anticipated, thus impeding the pace at which carbon intensity can be reduced.
Iraq
Wael Sawan holds the position of CEO at Shell Iraq.
According to Jonathan Noronha-Gant, a senior campaigner at Global Witness, the £8 million compensation received by Shell’s CEO is hard to accept for those struggling with the expensive energy prices. The company’s profits from the use of fossil fuels may benefit them, but it has negative impacts on everyone else.
The wage disparity between the Shell CEO and the average UK worker is a stark reminder of the flaws in our energy industry.
“While energy industry leaders are rejoicing in their billions of profits from the Ukraine conflict, millions of individuals are struggling to afford basic necessities like heating and food. Our politicians must prioritize the needs of their constituents over the interests of the wealthy corporations who fund their campaigns.”
BP, a major oil and gas company based in the UK, recently announced that their new CEO earned over £8 million in the previous fiscal year before assuming the role full-time.
Murray Auchincloss’s pay package consisted of more than £1.5m in salary, benefits and cash in lieu of pension. He was also handed a £1.8m bonus, and a little under £4.7m in shares that were linked to performance. Mr Auchincloss was chief financial officer for most of 2023, but took over as interim chief executive in September when his predecessor stepped down.
Murray Auchincloss, CEO of BP
Shell has announced a new goal to decrease the amount of emissions generated by customers using its oil products by 15-20% by 2030, in comparison to 2021 levels. This falls under the category of Scope 3 emissions.
Earlier this month, The Independent exposed that numerous energy corporations functioning in the United Kingdom earned “shocking” profits exceeding £1bn per week around the world while countless Britons faced financial strain due to the rising cost of living.
Some of the major gas providers in the UK, such as Shell, Equinor, ExxonMobil, and BP, earned a combined net profit of £65 billion in 2023. This has led activists to criticize these multinational companies for contributing to the “energy bills crisis.”
The original website is independent.co.uk
