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Spanish IBEX CEOs' salaries under the spotlight during the AGMs

10 February 2022 Articles

This article, by the Spanish news publication Social Investor, finds that board remuneration has been a matter of controversy during the 2021 Spanish AGM season and that CEOs will be subject to greater scrutiny in the next season.

Transparency in climate-related matters, such as climate change evaluation, objectives linked to short- and medium-term environmental commitments, and shareholders' climate initiatives, are some of the factors that will determine the salaries of the main executives and the boards of IBEX companies.

The article highlights Morrow Sodali's findings from its recent EMEA Lighthouse that several boards suffered rejection to their remuneration proposals during the 2021 AGM season and this adverse reaction had increased from the 2020 season. "Boards of directors are expected to more explicitly accredit what actions they have taken to resolve significant shareholder discontent at previous meetings," it adds.

Morrow Sodali predicts that the election of directors who are members of committees may receive negative votes if the actions of the committees they participate in are considered deficient.