Friday, September 24

Ibex salaries open a gap with business results

Not all the presidents or CEOs of the Ibex companies have seen their salary contained in 2020, nor have all of them been lowered in line with the loss of profits from their companies; and not even those whose management has resulted in losses have had to see part of his annual salary reduced.

No one can deny that the labyrinth X-ray of the remuneration of the Ibex-35 executives, reported to the National Securities Market Commission (CNMV), has registered a halt with respect to the upward trend in recent years of economic recovery. The disappearance –and in many cases the resignation– of bonuses explains the decline in these millionaire salaries: as a whole, the 35 Ibex executives pocketed 140 million euros the year of the pandemic, 12% more than the previous one.

Without the statistical effect caused by a particular case, that of the President of Acciona, José Manuel Entrecanales –His remuneration has been multiplied by seven when collecting a pending multi-year plan–, salaries would have fallen an average of 15% to 104 million.

This type of payments withheld for several years, and which materialize in the year that is statutorily applicable, as well as contributions to pension plans, continue to increase the backpack that most of those responsible for the main Spanish listed companies have in the future.

However, the calculation of the annual accounts of the selective companies ended in losses in 2020, to record 6.3 billion ‘red numbers’. Of all of them, 11 firms failed to achieve the benefits. And despite this, some of its managers saw their remuneration increased. It is the case of President of Ferrovial, Rafael del Pino, which pocketed almost 9% more, despite the fact that the construction company lost 253 million euros. This group also includes the president of Indra, Fernando Abril Martorell, whose remuneration rose more than 60%, as well as the CEO of Siemens Gamesa, Markus Tracke, who almost tripled his salary in 2020.

Upward results

The rest of the executives whose remuneration was higher in the year of the pandemic than in the previous year coincide with business results that also managed to improve despite the crisis, such as Ignacio Sánchez Galán: the president of Iberdrola earned 20% more, while the company also increased its annual accounts by 7%.

Another energy corporation is in a similar situation –in fact, it was the sector that best weathered the crisis thanks to its regulated businesses and the boost in renewable investments–, Endesa: your CEO, José Bogas, obtained a remuneration 7.7% higher than in 2019 in a year in which the company multiplied its result seven times.

Cuts in bankers

If there is one piece of information that the eyes of the citizen are fixed on every year, that is the salary of the bankers. During 2020 these remunerations were diminished by the absence of a good slice of the variable bonuses. In most cases due to their own resignation, the executives of these corporations saw their salary cut in this latest crisis. And, at the same time, all entities either reduced results or ended up directly in losses.

In the case of Santander, its president Ana Botín earned 8.1 million, 18% less than in 2019. The president and her CEO, José Antonio Álvarez, saw their annual remuneration reduced by 50% and the rest of the directors by 20% to save 25 million.

At BBVA, its president, Carlos Torres, it pocketed 3.4 million, practically a third less in internal terms. Torres and the top of the bank, including the CEO, Onur Genç, also waived the collection of the bonus in the context of the pandemic. Also the president of Sabadell, Josep Oliu, saw its annual salary cut by almost 40%, the largest decrease in the entire financial sector.

The president of Bankia, José Ignacio Goirigolzarri, His salary decreased by 17%, although he was the banker who earned the least among his colleagues: an average of half a million euros since he became president of the rescued bank. Now, as Chairman of the new CaixaBank, will charge 1.6 million. For his part, the CEO of this entity, Gonzalo Gortázar, saw his salary cut by 8% in the middle of the year after the most serious economic crisis that Spain has experienced in decades.

There are even cases of executives who accumulate two consecutive years with lower salaries than in the previous year. This is what happens to Florentino Pérez (ACS), with a drop of 8% this year and 5.5% in 2019; to the President of Inditex, Pablo Isla, with 6.6% less remuneration, after 34% the previous one; President of Telefónica, José María Álvarez-Pallete (6% less after freezing in 2019) and that of Mapfre, Antonio Huertas, with 16% and 3% less, respectively.

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