Shareholders are more demanding with Executive salaries

Support for Executive remuneration policies at Ibex-35 issuers declined during this year's proxy season.

According to our latest European Proxy Season Review, in 2024, Ibex-35 issuers submitted 16 remuneration policies to shareholder vote. On average, dissenting votes amounted to 14.3% of total cast votes, while average support amounted to 85,7%. This figure represents a decrease compared to the 86.1% approval in the 2023 proxy season (13.9% against) and the 87.7% in 2022 (12.3% against). 

As usual, stakeholders' concerns surrounded executive quantum compared to company performance, the report's disclosure quality, and the use of remuneration schemes that contradict international best practices.

As in previous years, most Ibex-35 issuers require the achievement of ESG targets to vest their executives' variable pay schemes. Sixty-nine percent of them include ESG targets in both short-term and long-term compensation plans, while the annual bonus is the preferred element to include them (87.9%).

Read the full article here (in Spanish).