The larger the corporation, the bigger the difference between the salaries of top executives and those of the staff. The executive directors of Ibex companies – mostly CEOs or presidents with executive functions – received last year on average a remuneration equivalent to 53 times that of their employees, compared to 19 times that of the rest of the listed companies, according to the annual report on corporate governance and remuneration published this Monday by the CNMV.
This year’s report highlights the increase in the remuneration of these professional profiles, higher than the average salary, which was 4.7% in 2023 according to the INE, and also higher than inflation, of 3.5%. The remuneration of executive directors, both in the Ibex and in other listed companies, increased last year by an average of 7%.
In the case of executive directors, the average amount reached 1.8 million euros across all listed companies, without taking into account extraordinary components. When added together, surprises emerge such as the 23.7 million euros in remuneration received last year by the CEO of Cie Automotive, Jesús María Herrera.
The average remuneration of non-executive directors – this also includes all listed companies, whether or not they are on the Ibex – was 160,000 euros, 4.6% more, while the average remuneration of the boards of directors remained stable at 4.1 million euros.
The gap between the CEO and the average employee is growing even more in other listed companies
Excluding extraordinary items, executive directors of listed companies earned 31.5 times more than the average employee last year, compared to 31 times in 2022. The 53 times of Ibex executives is actually a slightly lower ratio than the 54 times of the previous year, although the gap has widened in the rest of listed companies, going from 17 to 19 times.
In the case of non-executive directors, the ratio is lower and their average remuneration was three times that of the staff.
There is also a gender gap among executive directors, although the CNMV acknowledges that the sample is subject to distortion. Overall, men earn 13.5% more than women.
The gender gap reaches 58% in non-Ibex listed companies
As regards the gender gap, the most notable thing is actually the small number of women executive directors. This means that the average remuneration of female executive directors on the Ibex is 47% higher than that of male executive directors. There are few of them and the executive president of Santander, Ana Botín, stands out among them.
However, when we look at listed companies other than the Ibex, we see that women earn 58% less than men. In the case of non-executive directors, men’s remuneration is 19.7% higher than that of women.
The presence of women on boards increased to 34.5%, compared to 31.9% in 2022. In the case of the Ibex, the percentage is 40.1%, slightly above the recommendation of 40%. The percentage of women on the board in 2004, before the approval of the codes of good practice, was 5.9%.
Nearly half of presidents still have executive functions
There is also controversy surrounding executive directors regarding the role of the chairman of the board. Codes of good practice recommend that he or she not have executive functions, but in a good number of listed companies the chairman ends up performing these roles in one way or another.
Chief executives account for 49% of the total, while independent chairmen, i.e. those who are also independent directors, account for 12.8%, compared with 11.6% a year earlier.
Source: www.lavanguardia.com
