The remuneration of the executive directors of listed companies increased by more than 13% last year, mainly due to extraordinary benefits
The executive directors of the listed companies (those of the Ibex and those of the Continuous Market) received on average 32 times more than what their employees received last year, according to the latest report of the CNMV (National Commission of the Stock Market), with the remuneration data of all Spanish listed companies for the past year.
It is the first time that the companies included in the main Spanish stock market index will have to make comparisons between the remuneration of the directors, the consolidated results and the average remuneration of the employees. In any case, the regulator emphasizes that, according to the CNMV, these figures in any case show a “high spread between different companies, sectors or company sizes”.
The pay ratio between executive directors and employees rises to 60 times, in the case of Ibex-35 companies, while it is 17 times in entities not included in the index.
The remuneration of the boards of directors of companies listed in Spain increased by 13.2% in 2021 compared to 2020, partly as a result of the extraordinary remuneration resulting from the dismissal of directors in a company. Excluding these exceptional items, the increase would have been 5.2%. For example, the average remuneration of the executive directors (ie excluding own and independent directors) increased by 7.1% to 1.7 million euros and that of non-executive directors by 28.5% (to 167,000 euros).
The increase in the remuneration of non-executive directors is mainly explained by the aforementioned extraordinary remuneration as a result of the dismissal of directors who were executive directors but who did not hold management positions at the end of the financial year.
If the average remuneration of external (non-executive) directors is analyzed, without taking into account extraordinary items, the ratio drops to three times the average remuneration of employees.
On the other hand, 70.6% of Ibex-35 companies had at least 50% independent directors on their boards (67.7% in 2020). Of the other companies, 73.3% had at least a third of the self-employed on the board (73.6% in 2020).
The chairmen of the governing bodies remained largely executive, increasing the percentage they represent to 51.7% (50% in 2020). Conversely, the percentage of independent directors holding the position of chairman fell to 14.2% (19.9% in 2020).
As for the presence of women on boards, it increased to 29.3% (26.1% in 2020), reaching 34.2% in the case of the Ibex-35. It is recalled that the code’s recommendation was at least 30% by 2021 and 40% by the end of 2022.
This increase occurred in all categories, but was more significant among independent directors. The number of female directors also increased to 6.4% (5.6% in 2020).
Finally, the level of compliance with the recommendations of the Code of Good Governance was 86.4%, three points more than the previous year, mainly due to the companies adapting to the new practices set out in the Code. included in the aforementioned partial revision of 2020.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
