Home > Compensation > Report by PWC on the Spanish public companies` Boards performance

Report by PWC on the Spanish public companies` Boards performance

PWC has recently (june 2012) published a report based on a survey to directors in Spanish public companies, in which it intends to offer some light on certain topics:

  1. How do public Spanish firms` boards perform?
  2. How are independent directors paid?
  3. Trends for future

The overall evaluation is very satisfactory, and a progress on relevant Corporate Governance aspects is shown.

I will limit this comment to the Independent director compensation, that PWC specifically intends to analyze, as it allows to inform about “only directorship” compensation, (so, executive functions apart).

According to the Spanish legislation, companies have published individual compensation for their directors, so primarily based on that, these are the main results:

1.- The  total compensation for the Mean Independent Director, (an average of total compensation for all functions, in board and commissions), for (whatever size) all companies amounts to 132.127 €, slightly below 2010.

2.- Separating pay for each function: Board membership is the highest paid, followed by Executive Commission, (51% of Board membership), and then Audit and Recruiting and Compensation Commissions, (30% and 26%).

3.- Bigger firms compensate more in percentage for Commission membership than for Board membership itself.

4.- The Chairman in a Commission is usually paid more than members, an average ratio being 1.5, (up to 1.8 in bigger firms).

5.- Compensation limits and  components:

– 88% of firms establish limits for board`s total compensation, (an absolute value or a percentage of profits).

– 88% of firms use a fixed fee, 58% offer attendance fees, and only 6% of firms offer a share on profits or stock based compensation for Independent Directors.

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