Shell is facing a possible revolt at its annual meeting this week after a leading shareholder advisor said investors should oppose the pay packet for its executives.
It comes as the oil giant faces questions on its strategy after reports it is weighing up a takeover bid for rival BP.
Ahead of the meeting near Heathrow Airport on Tuesday advisory firm Pirc said it was concerned the packet for Wael Sawan was ‘excessive’ saying the ratio of the chief executive’s pay to an average employee was 63 to 1.
Last year, Sawan received £8.6 million in pay and bonuses, up from £7.9 million the previous year. Pirc also encouraged shareholders to support a proposal which, if passed, would force the firm to explain how targets for its liquefied natural gas business aligned with its plans to reach net-zero emissions by 2050.
Opposition: Advisory firm Pirc said it was concerned the packet for Wael Sawan (pictured) was ‘excessive’
While Shell has encouraged investors to oppose the resolution, Pirc said the LNG business presented ‘a critical area of financial and climate-related risk’ due to the firm’s reliance on the division for a large chunk of its sales.
Pirc has also opposed the re-election of chairman Sir Andrew Mackenzie after saying Shell’s climate planning and governance fell ‘significantly short’ of expectations.
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