Investor advisor Glass Lewis additionally asks to vote in opposition to the compensation of Pallete and Vilà | Companies | EUROtoday

International funding funds with Telefónica shares have obtained a second advice to vote in opposition to the corporate’s remuneration report on the common assembly of shareholders scheduled for March 26. Voting advisor Glass Lewis has joined the place of Institutional Shareholder Services (ISS) by questioning the funds made in 2025, focusing his rejection on what he considers extreme compensation for the earlier administration management. This coincidence between the 2 main proxy advisors available on the market locations elevated strain on the board, as Glass Lewis routinely deviates from ISS’s destructive suggestions.

The Glass Lewis technical report analyzes intimately the 78.4 million euros allotted to the departure of former president José María Álvarez-Pallete and former CEO Ángel Vilá in January 2025. Álvarez-Pallete obtained 44.5 million euros, of which 23.5 million correspond to a severance fee equal to 4 years, added to 13.1 million of his pension plan social. For its half, Vilá’s settlement amounted to 33.9 million euros, together with 17.7 million for contract termination and 9.7 million in retirement rights. These figures, which embody pension plans and the execution of long-term remuneration, are described by advisors as disproportionate to present requirements of fine governance.

In addition to the settlements of the previous executives, the advisor questions the mounted annual wage of the present government president, Marc Murtra, situated at 1.9 million euros. Glass Lewis factors out that many traders are skeptical about excessive ranges of mounted funds that aren’t linked to the corporate’s trajectory, particularly in a context the place Telefónica’s share worth has fallen 16% within the final twelve months, primarily affected by the reduce within the dividend. The report concludes that there’s a lack of transparency in salaries and that these don’t have a direct relationship with the current evolution of the group.

​For its half, Telefónica defends that these funds reply to commitments acquired in outdated contracts, previous to the 2023 coverage reform, and that its authorized providers confirmed the appropriate of managers to obtain each compensation and pension plans. The firm has careworn that the mannequin has already been modified, limiting funds for breaking a contract to a most of 24 months for the present president.

New remuneration scheme

Indeed, exactly and as this newspaper introduced, one of many proposals that can be submitted for approval on the assembly on March 26 is a brand new, extra restrictive remuneration coverage, as seems within the agenda despatched to traders. The most vital change, which can come into drive in 2027, establishes a strict incompatibility of costs: from that date, managers won’t be able to concurrently obtain compensation for termination and the financial rights derived from the Social Security Plan. In addition, the compensation for the president within the occasion of departure is decreased to 2 years.

In phrases of wage, the brand new scheme units Marc Murtra’s wage on the 1.93 million euros that his predecessor obtained, whereas the CEO could have a hard and fast wage of 1.45 million euros.

However, the corporate’s technique is firmly dedicated to variable remuneration. The new textual content will increase the revenue “ceiling” in most situations, permitting the president to achieve as much as 240% of his mounted wage in long-term variables and 216% within the quick time period.

In this sense, Glass Lewis has certified its place by giving its help to the remuneration plan projected for the interval 2026-2029, in addition to the remainder of the gadgets on the board’s agenda.

​The closing resolution now stays within the palms of the operator’s principal shareholders, which embody the State Society of Industrial Participations (Sepi), CriteriaCaixa, Saudi Telecom and BBVA, with 35% of the capital and who’ve at all times unanimously supported the proposals on the agenda.

Although the purpose on 2025 remuneration is just advisory in nature and a vote in opposition to wouldn’t droop its implementation, the suggestions of those advisors often mobilize round 10% of the share capital, which marks the extent of acceptance of the remuneration administration earlier than the worldwide funding neighborhood.