Remuneration

Our remuneration is designed to support us in achieving our net-zero emissions target. Our Long-term Incentive Plan (LTIP), Performance Share Plan (PSP) and annual bonus scorecard all include performance indicators that help us to assess our success in delivering our energy transition strategy.

In 2023, Shell’s journey in the energy transition continued to be part of the annual bonus scorecard (15% weighting), which applied to all Group employees. We assessed our performance using three metrics:

• selling lower-carbon products: the proportion of adjusted earnings in our Marketing segment coming from lower-carbon energy products (on a life-cycle basis), as well as non-energy products and convenience retail;
• reducing our operational emissions: greenhouse gas abatement projects that reduce our Scope 1 and 2 operational emissions; and
• partnering to decarbonise: progress in rolling out electric vehicle charge points.

The annual bonus scorecard continued to include a customer excellence measure (10% weighting), highlighting the importance of building stronger customer relationships in the energy transition. The scorecard also continued to include safety performance (15% weighting). For a complete breakdown of the scorecard see the graphic below.

In 2023, a proportion of the Long-term Incentive Plan, applicable to Executive Directors and around 150 other senior executives, was linked to Shell’s journey in the energy transition (25% weighting), including a target to reduce the net carbon intensity of our energy products by 9–13% (compared with a 2016 baseline) by 2025. The same energy transition performance condition was also part of the 2023 Performance Share Plan awards (12.5% weighting), applicable to around 16,500 employees.

Read more about remuneration in our 2023 Annual Report.