Shell CEO's Pay Could Surge to £19.2M Amid Shareholder Consultation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy SHEL?
Source: seekingalpha
- Pay Surge Plan: Shell's proposal to grant CEO Wael Sawan a long-term incentive stock award could elevate his total compensation to £19.2M, significantly enhancing his pay structure to attract and retain executive talent in a competitive market.
- Shareholder Consultation Outcome: The consultation with major shareholders may result in Sawan earning an additional £4.5M annually, reflecting a reassessment of executive compensation structures aimed at strengthening management incentives to drive company performance.
- Peer Comparison: Despite the substantial pay plan, Sawan's compensation remains dwarfed by U.S. oil executives, such as Exxon Mobil's Darren Woods, who received $44.1M in 2024, highlighting international pay disparities and competitive pressures in the industry.
- Earnings Forecast: Shell is expected to report Q4 results on Thursday, with analyst consensus predicting adjusted earnings of $3.51B, down from $5.43B in Q3 and $3.66B year-over-year, indicating challenges in the current market environment.
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Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SHEL is 74.27 USD with a low forecast of 41.75 USD and a high forecast of 91.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 77.630
Low
41.75
Averages
74.27
High
91.00
Current: 77.630
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Shell's Q4 Earnings Expected to Rise Amid Revenue Dip
- Earnings Growth Projection: Shell is projected to report a 9.3% increase in fourth-quarter earnings on February 5, with an estimated EPS of $1.29, indicating resilience in profitability despite anticipated revenue decline.
- Revenue Decline Expected: Revenue is expected to reach $65.82 billion, reflecting a 0.7% year-on-year decrease, which indicates market caution regarding growth amid fluctuating global oil prices.
- Production Outlook Adjustment: The company has adjusted its integrated gas production forecast to between 930 and 970 kboe/d, with LNG liquefaction volumes expected between 7.5 and 7.9 MT, demonstrating adaptability to changing market demands.
- Shareholder Return Pressure: Despite previously committing to allocate 40%-50% of cash flow to dividends and buybacks, Shell is expected to reduce its quarterly repurchase amount from $3.5 billion to $3 billion, reflecting a cautious strategy in response to declining oil prices.
See More
Shell CEO's Pay Could Surge to £19.2M Amid Shareholder Consultation
- Pay Surge Plan: Shell's proposal to grant CEO Wael Sawan a long-term incentive stock award could elevate his total compensation to £19.2M, significantly enhancing his pay structure to attract and retain executive talent in a competitive market.
- Shareholder Consultation Outcome: The consultation with major shareholders may result in Sawan earning an additional £4.5M annually, reflecting a reassessment of executive compensation structures aimed at strengthening management incentives to drive company performance.
- Peer Comparison: Despite the substantial pay plan, Sawan's compensation remains dwarfed by U.S. oil executives, such as Exxon Mobil's Darren Woods, who received $44.1M in 2024, highlighting international pay disparities and competitive pressures in the industry.
- Earnings Forecast: Shell is expected to report Q4 results on Thursday, with analyst consensus predicting adjusted earnings of $3.51B, down from $5.43B in Q3 and $3.66B year-over-year, indicating challenges in the current market environment.
See More
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- Stake Sale: Shell's Brazilian subsidiary, Shell Brasil, sold a 20% stake in the Orca deep-water development to Kuwait Foreign Petroleum Exploration Company, with the deal expected to close by the end of 2026, allowing Shell to maintain a 50% interest and strengthen its position as the largest foreign oil producer in Brazil.
- Capital Management: This transaction aids Shell in managing capital efficiently across its portfolio, ensuring its status as the largest foreign oil producer in Brazil while enhancing financial flexibility to adapt to market changes.
- Investment in Nigeria: Shell made a final investment decision of approximately $5 billion for the Bonga North project in Nigeria, along with an additional $2 billion for the HI/Feed shallow-water gas development, indicating its ongoing expansion in the African market.
- Stock Performance: Following the announcement, Shell shares rose by 1.13% to $76.58, nearing its 52-week high of $78.17, reflecting positive market sentiment towards its strategic initiatives.
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- Stable Dividend Growth: With a 38-year streak of annual dividend increases and a 4% yield, Chevron stands out among peers, particularly as ExxonMobil offers a lower yield of 2.9%, highlighting Chevron's financial strength and reliability in shareholder returns, especially during periods when competitors cut dividends.
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- Shareholder Distribution Cuts: Analysts expect that Europe's largest oil companies, including Shell, BP, TotalEnergies, Eni, and Equinor, will collectively reduce shareholder distributions by 10%-25% when they report full-year results this month, indicating a shift towards austerity in response to declining oil prices.
- Pressure on Buyback Strategies: These companies have allocated over half of their cash flow to stock buybacks in recent years, which has supported their stock prices; however, this strategy is under significant strain as oil prices fell by approximately 20% last year and are projected to weaken further in H1 2026 due to rising crude supplies.
- Shell's Buyback Adjustment: Shell is expected to cut its quarterly buybacks from $3.5 billion to $3 billion, reflecting the company's uncertainty about future oil prices, despite previously considering spending 40%-50% of cash flow on dividends and buybacks as
See More
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- Market Sentiment Cooling: Polymarket indicates a sharp drop in the odds of a U.S. strike on Iran to 25%, down from last week's highs, reflecting a significant unwinding of the market's 'war premium' which could lead to further declines in oil prices.
- Oil Price Plunge: The easing geopolitical tensions have caused West Texas Intermediate (WTI) to fall to approximately $61.80 and Brent Crude to drop to around $65.90, marking a roughly 5% decline from Friday's close, directly impacting the energy sector.
- Energy Sector Consolidation: Amid the chaos, some U.S. drillers are opting for consolidation as a defensive strategy, aiming to leverage scale and a dominant position in the Delaware Basin to withstand the volatility rocking global markets.
- Future Risk Assessment: Should peace talks gain traction, oil prices could fall below Wall Street's expectations, posing a serious threat to the energy sector's record shareholder returns and prompting investors to reassess risk exposure.
See More
Shell's Q4 Earnings Expected to Rise Amid Revenue Dip
- Earnings Growth Projection: Shell is projected to report a 9.3% increase in fourth-quarter earnings on February 5, with an estimated EPS of $1.29, indicating resilience in profitability despite anticipated revenue decline.
- Revenue Decline Expected: Revenue is expected to reach $65.82 billion, reflecting a 0.7% year-on-year decrease, which indicates market caution regarding growth amid fluctuating global oil prices.
- Production Outlook Adjustment: The company has adjusted its integrated gas production forecast to between 930 and 970 kboe/d, with LNG liquefaction volumes expected between 7.5 and 7.9 MT, demonstrating adaptability to changing market demands.
- Shareholder Return Pressure: Despite previously committing to allocate 40%-50% of cash flow to dividends and buybacks, Shell is expected to reduce its quarterly repurchase amount from $3.5 billion to $3 billion, reflecting a cautious strategy in response to declining oil prices.
See More
Shell CEO's Pay Could Surge to £19.2M Amid Shareholder Consultation
- Pay Surge Plan: Shell's proposal to grant CEO Wael Sawan a long-term incentive stock award could elevate his total compensation to £19.2M, significantly enhancing his pay structure to attract and retain executive talent in a competitive market.
- Shareholder Consultation Outcome: The consultation with major shareholders may result in Sawan earning an additional £4.5M annually, reflecting a reassessment of executive compensation structures aimed at strengthening management incentives to drive company performance.
- Peer Comparison: Despite the substantial pay plan, Sawan's compensation remains dwarfed by U.S. oil executives, such as Exxon Mobil's Darren Woods, who received $44.1M in 2024, highlighting international pay disparities and competitive pressures in the industry.
- Earnings Forecast: Shell is expected to report Q4 results on Thursday, with analyst consensus predicting adjusted earnings of $3.51B, down from $5.43B in Q3 and $3.66B year-over-year, indicating challenges in the current market environment.
See More
Shell Sells 20% Stake in Brazil's Orca Project
- Stake Sale: Shell's Brazilian subsidiary, Shell Brasil, sold a 20% stake in the Orca deep-water development to Kuwait Foreign Petroleum Exploration Company, with the deal expected to close by the end of 2026, allowing Shell to maintain a 50% interest and strengthen its position as the largest foreign oil producer in Brazil.
- Capital Management: This transaction aids Shell in managing capital efficiently across its portfolio, ensuring its status as the largest foreign oil producer in Brazil while enhancing financial flexibility to adapt to market changes.
- Investment in Nigeria: Shell made a final investment decision of approximately $5 billion for the Bonga North project in Nigeria, along with an additional $2 billion for the HI/Feed shallow-water gas development, indicating its ongoing expansion in the African market.
- Stock Performance: Following the announcement, Shell shares rose by 1.13% to $76.58, nearing its 52-week high of $78.17, reflecting positive market sentiment towards its strategic initiatives.
See More
Chevron: A Smart Choice for Energy Investment
- Diversified Business Model: Chevron's vertical integration across upstream (energy production), midstream (pipelines), and downstream (chemicals and refining) segments mitigates the impact of commodity price fluctuations on revenue and earnings, ensuring stable financial performance throughout energy cycles.
- Stable Dividend Growth: With a 38-year streak of annual dividend increases and a 4% yield, Chevron stands out among peers, particularly as ExxonMobil offers a lower yield of 2.9%, highlighting Chevron's financial strength and reliability in shareholder returns, especially during periods when competitors cut dividends.
- Low Leverage Advantage: Chevron's debt-to-equity ratio is lower than most peers, except for ExxonMobil, allowing it to take on debt during downturns to support its business and dividends, and quickly pay down debt when oil prices recover, enhancing its resilience against market volatility.
- Superior Investment Choice: While ExxonMobil and Chevron share similarities, Chevron's higher yield and stronger financial stability make it a smarter investment choice, particularly when considering its long-term history of dividend growth compared to competitors who have faced dividend cuts.
See More
European Oil Giants Expected to Cut Shareholder Distributions
- Shareholder Distribution Cuts: Analysts expect that Europe's largest oil companies, including Shell, BP, TotalEnergies, Eni, and Equinor, will collectively reduce shareholder distributions by 10%-25% when they report full-year results this month, indicating a shift towards austerity in response to declining oil prices.
- Pressure on Buyback Strategies: These companies have allocated over half of their cash flow to stock buybacks in recent years, which has supported their stock prices; however, this strategy is under significant strain as oil prices fell by approximately 20% last year and are projected to weaken further in H1 2026 due to rising crude supplies.
- Shell's Buyback Adjustment: Shell is expected to cut its quarterly buybacks from $3.5 billion to $3 billion, reflecting the company's uncertainty about future oil prices, despite previously considering spending 40%-50% of cash flow on dividends and buybacks as
See More
U.S. Strike Odds on Iran Drop Sharply Amid Diplomacy
- Market Sentiment Cooling: Polymarket indicates a sharp drop in the odds of a U.S. strike on Iran to 25%, down from last week's highs, reflecting a significant unwinding of the market's 'war premium' which could lead to further declines in oil prices.
- Oil Price Plunge: The easing geopolitical tensions have caused West Texas Intermediate (WTI) to fall to approximately $61.80 and Brent Crude to drop to around $65.90, marking a roughly 5% decline from Friday's close, directly impacting the energy sector.
- Energy Sector Consolidation: Amid the chaos, some U.S. drillers are opting for consolidation as a defensive strategy, aiming to leverage scale and a dominant position in the Delaware Basin to withstand the volatility rocking global markets.
- Future Risk Assessment: Should peace talks gain traction, oil prices could fall below Wall Street's expectations, posing a serious threat to the energy sector's record shareholder returns and prompting investors to reassess risk exposure.
See More
