ROYAL Dutch Shell chief executive Ben van Beurden saw the value of his pay package increase by more than 50 per cent last year although the company’s underlying profits fell around 40 per cent.

Shell’s annual report shows Mr van Beurden earned €8.6m in total in 2016 (around £7m) compared with €5.6bn in the preceding year.

His salary increased slightly to €1.46m from €1.43m.

The total value of bonus payments and long term incentive plan awards soared to €6.8m from €3.6m.

Shell’s profits fell to $7.2bn (£5.2bn) net of one-offs in 2016, from $11.5bn in the preceding year. The oil price plunge has impacted on its performance.

But in Shell’s results announcement last month Mr van Beurden said it had made good progress after completing the £37bn takeover of BG in February last year. This has been followed by big job cuts in Aberdeen.

Shell has cut around 1,000 North Sea jobs since 2014. In November the firm announced plans to close its accounts centre in Glasgow, which will put nearly 400 posts at risk.

Shell is selling North Sea assets accounting for around half its output in the area to Chrysaor for up to £3bn. It wants to cut debt and focus investment on big growth projects.

Yesterday the company announced a deal to sell a portfolio of oil sands assets in Canada to Canadian Natural Resources for $8.5bn.

In the annual report Shell said some shareholders had highlighted the ongoing public debate over levels of executive remuneration. The chairman of the remuneration committee, Gerard Kleisterlee, wrote: “I assure you that REMCO is sensitive to that discussion.”