BBVA and Sabadell are the banks with the greatest executive protection

When a manager is protected by million-dollar compensation provisions, he acts with greater freedom and boldness, which should be taken into account in the current battle between BBVA and Sabadell.

BBVA with 52 and Sabadell with 33.he and IListed banks with a large number of directors, officers or directors with special compensation provisions (shielding) in case of termination.

This is clear from the analysis carried out by EXPANSIÓN on the comparison of this type contracts that are, to a greater or lesser extent, described in companies’ respective corporate governance reports and board remuneration reports.

KaishaBank also has 33 armored professionals, like Sabadellnose somewhat worse conditions. Santander, in turn, has 22like Unicaja.Bankinter will be the strictest, having only one contract of this type.

Practice shielding It is included in Section C, which listed companies must submit annually to the National Securities and Markets Commission (CNMC) in a standardized manner. They mechanism for attracting and retaining talent and preventing them from leaving for a competing group. Hence They are usually associated with a non-compete agreement. in case of payment for this shielding.

During February, reports for the previous year are usually submitted, with data updated to December or the date of the report. Companies must report how many protected contracts they have with staff and whether these cover directors, managers or other employees.

BBVA, two annuities

In his latest document BBVA – this is the bank that submitted a bid to acquire Sabadell, whose takeover was considered hostile – explains that It does not have armored directors as such, but it does have executive directors, although these are executive directors. (president’s business Carlos Torres and CEO Onur Gench).

There were 52 in 2023, up from 56 the year before. Torres and Genc are entitled to compensation of a two-year fixed fee, which will be paid monthly during the two-year non-compete period.

Sabadell and “control”

Sabadell has 33 executives (up from 35 in 2022), including the CEO, Cesar Gonzalez-Buenoand Advisor to the General Director, David Vegara.President Josep Oliu is not there. Compensation ranges from one to two years – always with a non-compete clause. For Gonzalez-Bueno, the protection is enhanced: two fixed salary annuities plus pension plan contributionsthat in 2023 the sum of both amounted to 2 million euros. Compensation can be activated not only in the event of termination. Also with the “change of management” of the company.

CaixaBank, one year

KaishaBank It employs 33 armored executives (37 in 2022). Are President (José Ignacio Goirigolzarri) and CEO (Gonzalo Gortazar)which has a fixed benefit annuity plus one for a non-compete agreement.

For other managers, this period ranges from 0.1 year to two years “beyond what is provided for by the legal imperative.”

Santander, more limited

Santander’s case is perhaps the most limited. It has 22 armored managers (21 in 2022). Have right to compensation equal to one to two years of their “basic salary” if they are laid off by the bank, but only if this happens during the first two years of the contractual relationship with the bank.For other managers, an adjustment based on length of service is provided. In its reports, Santander explains that He has no obligation to remunerate directors for holding this position.

Unicaja, from 1 to 3 years

Unicaja He has 22 managers with contracts for armored vehicles. This significantly reduced their number, since in 2022 there were 30. This CEO (Isidro Rubiales), three board members and other employees. In the case of the CEO, the compensation is one year of his fixed salary with a non-compete clause. The amount will be paid once this period has expired and non-competition has been demonstrated. For other employees it ranges from one to three annuities.. Rubiales held the position Manuel Menendezreplacement and compensation of which caused a stir.

Bankinter, one and a half years

Bankinter This is the most unique case at the moment. He just replaced his first boss. Since March last year, Gloria Ortiz took up the position of General Director, replacement for Maria Dolores Dancauza, who became the non-executive president of the organization. Bankinter’s Corporate Governance Report, based on data from 2023 (that is, before this change occurred), explains that That year there was only one manager with armor. It was the CEO, then Dancausa, and now Ortiz.

The shield is actually a post-contractual “undertaking” of non-compete. at the blackboard. If you terminate your entire employment relationship with Bankinter, could not carry out professional activities for another competing entity for 18 months. Instead, at the end of the period, if necessary, will receive the equivalent of 50% of their last fixed annual remuneration.

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