The president of BBVA until last December 31, Francisco González, has received a total remuneration of 5,13 million euros corresponding to the year 2018, 11% less than a year earlier, while the then CEO of the entity – now the maximum responsible person – Carlos Torres Vila, has received 4.51 million euros, 8% less, according to the information submitted to the National Securities Market Commission (CNMV).
According to the data submitted, the fixed remuneration of former President González remained at 2.5 million euros, while the variable compensation was set at 2.6 million euros, 20% less than in 2017.
Torres, meanwhile, in his capacity as CEO, has generated a fixed remuneration corresponding to last year that remained constant with respect to 2017 1.96 million euros, while variable remuneration has fallen by 15%, up to 2.4 million euros.
In addition, BBVA has made a contribution to the forecasting system of the CEO of 1.6 million euros, which corresponds to the annual pension contribution set in 2017. Its defined contribution system establishes annual contributions that are clearly set and 'ex ante', so it can not receive the retirement pension in advance and neither in case of Cessation due to serious breach of duties.
For his part, the current CEO, Onur Genç, did not accrue, as is logical, any remuneration in 2018 for his new position. His fixed and variable remuneration in the year was associated with his previous position as CEO of BBVA Compass and responsible for BBVA in the United States.
In this sense, the one that was named «number two» of the blue bank on January 1, 2019, hgenerated a fixed remuneration of 2.2 million euros, while the variable part corresponding to 2018 was established at 980,000 euros.
BBVA has explained that, despite the «Excellent» results of the group in 2018, with an attributable net profit growth of 51.3%, to 5,324 million euros, the variable remuneration of executive directors generated in 2018 has fallen given that some financial indicators, although they improve with respect to the previous year, they are "below the established target", mainly due to the economic imbalances in Turkey and Argentina.
The behavior of several indicators, such as Efficiency ratio or attributable profit without corporate operations in these countries it was affected by the evolution of the exchange rates and the negative impact derived from the accounting for hyperinflation.
Remuneration policy for 2019
The remuneration policy of BBVA has established thatl 40% of variable remuneration must be paid during the first quarter of 2019, half in the form of shares and the other half in cash.
While, the remaining 60% is deferred and subject to multi-annual indicators that can reduce and even bring that part to zero, never increase it. This part of the variable remuneration will not begin to be collected until 2022, so it will be deferred for a period of five years and it will be divided into 60% in shares and the rest in cash.
Also, all variable remuneration is subject to clauses «malus», which could limit or prevent collection due to possible results of negative exercises or bad practice, and clawback clauses, which could allow the entity to recover amounts already paid.
In any case, the variable salary deferredis subject to the current remuneration policy in 2017, with multi-year indicators that can reduce it and even bring it to zero, never increase it, as well as clauses 'malus' and 'clawback'.
In 2019, for the determination of variable remuneration, the board of directors has maintained the attributable profit indicators without corporate operations, efficiency ratio and the indicator of customer satisfaction, although it has incorporated two new indicators: the tangible book value – related to the creation of value for the shareholder – and digital sales.
On the other hand, the board will submit to the general meeting of shareholders that will take place next March lto update the remuneration policy, which was approved in 2017, in order to incorporate the contractual conditions of the new executive president and the new CEO. If approved, this new policy would remain in effect until 2021.
The proposal of the council is a fixed remuneration of 2.45 million euros for Carlos Torres and 2.18 million euros for Onur Genç. In addition, it proposes that the annual fixed remuneration can not be increased by more than 5% of the annual average during the term of the policy.
Regarding the new CEO, Onur Genç, in addition to an insurance for disability and death, will have two additional fixed remunerations for their status as senior international executive: an annual amount in cash, which replaces the retirement pension, equivalent to 30% of their annual fixed remuneration, and an annual amount in cash, as a supplement to mobility, which is equivalent to 600,000 euros per year.