Shell’s 2026 AGM: Investors Approve Higher CEO Pay and Reject Follow This Climate Resolution

Shareholders approve a new executive pay policy

One of the central items was Resolution 2, which asked shareholders to approve Shell’s updated Directors’ Remuneration Policy.

The proposal passed with about 95.96% of votes in favor, demonstrating strong shareholder backing for the revised compensation framework.

Under the policy:

• CEO Wael Sawan’s maximum potential remuneration could rise to around £20.3 million, and up to £27.5 million under scenarios that assume strong share‑price growth.
• The company increased the potential long‑term incentive opportunity from 600% to 900% of salary, significantly expanding share‑based rewards tied to performance.

Shell’s board argued the changes were necessary to align executive incentives with those offered by global energy competitors, particularly U.S. oil majors that typically offer higher pay packages.

The policy also reflects broader efforts by UK‑listed companies to narrow the so‑called transatlantic pay gap between European executives and their U.S. peers.

The Follow This climate resolution fails

The AGM also considered Resolution 23, a shareholder proposal backed by climate activist group Follow This.

The resolution asked Shell to provide additional strategy disclosures and align more closely with scenarios that assume declining oil and gas demand. Shell’s board opposed the measure, arguing that the company’s existing climate disclosures already addressed the issues raised.

Shareholders ultimately rejected the proposal, with about 13% voting in favor and roughly 87% against.

CEO Wael Sawan said Shell believed its current reporting and strategy already covered the concerns raised by the activists.

Support lower than similar resolutions in recent years

Backing for the 2026 Follow This proposal was lower than in previous years.

• A similar climate resolution at Shell’s 2024 AGM received about 20.2% support.
• Another comparable proposal drew around 18.6% support, also falling short of a majority.

Against that backdrop, the roughly 13% support in 2026 represents a notable drop in investor backing for activist climate proposals at the company.

What the results suggest about investor sentiment

Taken together, the AGM outcomes point to strong shareholder support for Shell’s current leadership and governance strategy.

• All board‑recommended resolutions passed, including executive pay changes.
• The shareholder‑led climate proposal was decisively rejected.
• CEO Wael Sawan and Chair Andrew Mackenzie were reappointed with nearly 99% support, reinforcing investor confidence in the leadership team.

For analysts, the results suggest that most shareholders remain aligned with Shell’s board on strategy and governance, even as activist investors continue to push for stronger climate commitments.

At least for the 2026 AGM cycle, investors showed greater willingness to approve executive incentives tied to performance than to support external proposals seeking tougher climate disclosures or targets.