SHELL is set to face a tense annual general meeting (AGM) that could be dominated by clashes over climate action after it saw a record year of profits.

The company will probably see conflicting pressures at the meeting tomorrow as investors look to capitalise on record oil and gas profits while shareholder activists push for faster action on climate change issues.

Climate protesters are also expected to gather outside the venue at the Excel Centre in east London.

Investors will vote on pay packages for 2022, including that of outgoing chief executive Ben van Beurden, who took home £9.7m, including a £7.5m bonus - a jump of more than 50 per cent from the previous year.

It will also be the first time that new boss Wael Sawan, who has worked at

Shell since the 1990s, deals with shareholders as chief executive.

Meanwhile, shareholder activist group Follow This has filed a resolution calling for Shell to tighten its 2030 reductions targets for emissions on the products it sells.

The resolution has been backed by proxy adviser PIRC, which has also called for shareholders to vote against reappointing the company's chair, Sir Andrew Mackenzie, and oppose its annual report for failing to address climate risks by setting adequate targets.

However, proxy advisers ISS and Glass Lewis have recommended votes against the Follow This resolution.

Shell said it "strongly" disagrees with the activist resolution and welcomes the position of ISS and Glass Lewis.

The Follow This resolution is unlikely to receive enough votes to pass but will pile pressure on the board and the new chief executive.

PA

(c) 2023 City A.M., source Newspaper