The Chairman of Iberdrola, Ignacio Sánchez Galán, received a total remuneration of 12,201 million euros in 2020, including remuneration in shares corresponding to the strategic bond 2017-2019, which is 16.9% more than the amount received the previous year , as stated in the annual report on remuneration of the board of directors that the company has sent this Friday to the National Securities Market Commission (CNMV).
Of this total remuneration, 6.242 million euros correspond to his salary, in line with that of last year. Of this amount, 3.25 million euros are for annual variable remuneration, 2.25 million for his fixed salary and 567,000 euros for his remuneration as chairman of the board of directors, reports Europa Press.
In addition, in April 2020, the first delivery of shares corresponding to the 2017-2019 strategic bond was made, approved by the 2017 General Shareholders’ Meeting and linked to economic and emission reduction objectives. These objectives have been fully met.
By virtue of this bonus, and following a report from the Remuneration Committee, the Chairman of Iberdrola has received for this concept 633,333 shares of the company at a price of 8.92 euros per share, for a value of 5.652 million euros. Thus, the total remuneration amounts to 12,201 million euros.
The Remuneration Committee has carried out an internal comparative analysis (‘benchmark’) on the remuneration of competitors and comparable companies. The report concludes that “the remuneration of the president and CEO is lower than the median of comparable companies.”
The total remuneration of the board of directors of the energy company amounted to 19,831 million euros in 2020, which is 9% more than the previous year.
Freeze by 2021
For the financial year 2021, the board of directors has unanimously agreed and at the proposal of the Remuneration Committee, to maintain the fixed remuneration of the directors for belonging to the governing body and the amounts for the premium for attending meetings.
Likewise, the highest management body of the energy company has agreed to maintain for this year the fixed remuneration and variable remuneration limit for the performance of their executive functions of the president of Iberdrola, Ignacio Sánchez Galán, and the general director of the Businesses, Francisco Martínez Corcoles. These quantities have been frozen for several years.
The group, which last summer surpassed the capitalization of Inditex becoming at times the company with the highest market value of the Ibex, broke its profit record in 2020, which despite the pandemic and thanks to the capital gains obtained from the sale of Gamesa, increased by 4.2%, to exceed 3,600 million euros. The growth would have been 10% if the impact of Covid-19 is excluded, which was 238 million euros.
In addition, the group carried out a historical investment record of 9,246 million euros, 13% higher than the previous year. 91% of this volume was allocated to the development of new renewable projects and electricity networks to accelerate recovery, in line with the group’s strategy.
Last year, the group’s securities appreciated by 27.5%, beating Eurostoxx Utilities by 18 percentage points and the Ibex 35 by more than 40. Profitability for shareholders, including the dividend, increased by 32.7 %.