The average remuneration received by a director of a listed company was 382,000 euros per year in 2019. This is what concludes the annual report of directors’ remuneration published yesterday by the CNMV, which only takes into account for the preparation of the study those directors who served during the entire year.
The figure represents an increase of 1.9% compared to the previous year, but this increase is affected by the compensation of around 14 million euros received by a Repsol executive director for his termination of executive functions. Without this fact, the average would have decreased by 1.5% .
In the case of the companies that are part of the Ibex 35, the average annual remuneration rose to 710,000 euros (4.4% more than in 2018), while it fell to 204,000 euros for the rest of the listed companies (a reduction of 7 , 3% compared to the previous year).
The average remuneration paid by the boards of directors of listed companies was, on average, four million euros, 6.4% more than in the previous year.
Within the selective, it was the executive presidents who had the highest remuneration, whose average was 4.1 million euros in 2019. A lower figure than that obtained in the previous year, when it reached 4, 46 million euros. Following them are the CEOs, with an average of 3.1 million euros , 200,000 less than what was achieved in 2018.
The rest of the executive directors earned 2.8 million on average, followed by the non-executive chairmen who received 827,000 euros from half.
Executive presidents are also the positions with the highest remuneration in the case of companies that do not belong to the Ibex. Thus, the average remuneration for these positions reached 1.2 million euros in 2019, 15.12% more than in 2018, mainly due to the expiration of multi-year variable plans in two companies (Sacyr and Grupo Empresarial San José) during that year .
The executive directors received an average of 886,000 euros compared to 1.1 million the previous year, and the rest of the directors, 548,000 euros. Lastly, non-executive presidents stood with an average of € 212,000, somewhat higher than 2018, when this amount stood at € 189,000.
Fixed remuneration is the most significant amount of remuneration, especially in the case of selective remuneration, and represents on average 47% of total income –44% in Ibex companies and 54% in other companies–.
Regarding the rest of the amounts, the variable remuneration represents 33% of the income; allowances, 4%, and remuneration consolidated in the year by savings systems, 4%. The remainder corresponds to other remuneration items, where compensation is also included.
The CNMV report, however, does not yet take into account the effects that Covid-19 is having on remuneration. A Willis Towers Watson report published in May this year estimated that 14% of companies planned to reduce the remuneration of the board of directors as one of the measures to mitigate the economic effects of the pandemic.
In addition to this measure, 17% of the companies were considering reducing the accrual of the annual bonus; 16%, salary reductions, and 7%, the risk payment adjustment.
Specifically, the aforementioned report stated that executive directors would be the ones who would see a greater cut in their salaries, which in most cases was around 30%.
It must be taken into account that the surveys carried out for the preparation of the study were carried out in April, when the impact was still uncertain, so it is likely that these percentages have increased over the months.