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Shell raises dividends 4% despite profit drop and CEO pay controversy

A bold dividend hike defies Shell's shrinking profits—but will shareholders approve a CEO pay raise? The May 19 vote could reshape investor trust.

The image shows a poster with text and a logo that reads "Americans are saving $5.5 billion a year...
The image shows a poster with text and a logo that reads "Americans are saving $5.5 billion a year because of Biden-Harris Administration actions to crack down on excessive overdraft and bounced check fees".

Shell raises dividends 4% despite profit drop and CEO pay controversy

Shell has announced a 4% increase in its dividend despite a drop in profits for 2025. The energy giant also confirmed a $0.372 per share payout for the final quarter, while its stock price climbed to a new 52-week high. Shareholders will soon vote on a controversial pay rise for CEO Wael Sawan.

The company's adjusted net profit fell by 22% in 2025, landing at $18.1 billion. Yet Shell maintained its shareholder returns, distributing around $22.4 billion through dividends and buybacks. Operating cash flow remained strong at $42.9 billion.

CEO Wael Sawan saw his total pay jump by 60%, rising from £8.6 million in 2024 to £13.8 million in 2025. The board now seeks approval for a new remuneration policy that could increase his maximum long-term bonus by another 50%. Shareholders will have their say at the annual general meeting on May 19.

Shell's stock has surged roughly 21% since the start of the year, reflecting investor confidence. The dividend increase and buyback programme appear to have offset concerns over lower profits.

The upcoming vote on CEO pay will reveal shareholder sentiment about executive compensation. Meanwhile, Shell's financial strategy—balancing dividends, buybacks, and profit declines—continues to shape its market performance. The company's next moves will depend on investor feedback at the May meeting.

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