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Information of Prudential Relevance 2014

11.4. Information on the connection between the remuneration of the Identified Staff and the performance of the Group

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As specified above, in 2014 the amount of variable remuneration received by BBVA's Identified Staff has been determined by the following factors:

  • The Group's financial results.
  • The financial results and strategic projects in each business area.
  • The financial results and the unit's own indicators (not financial).
  • The individual's financial and non-financial targets.

The ordinary variable incentives in 2014 of the executive directors have been determined by the Group's results, based on the recurrent EVA without one-offs in constant euros, the net attributable profit without one-offs and the recurrent efficiency ratio without one-offs in constant euros. The purpose of the incentives system is to ensure that the amount of variable remuneration associated with each indicator does not vary in the event that the same result is obtained as in the previous year; if the results of the previous year are repeated for one indicator, in standardized terms, the bonus associated with it will be the same.

Similarly, the ordinary variable incentives of senior management are linked to both the Group's results and those of their management area.

For the rest of the members of the Identified Staff, the amount of variable remuneration depends on individual performance, results in the Area in which they provide their service, and the Group's results overall.

In 2014, the Group's earnings (net attributable profit without one-offs and recurrent EVA without one-offs) determined 50% of the final incentives for the Management Team. The other 50% has been determined by Total Shareholder Return (TSR), which as indicated for the incentive for 2014 was measured over a period of 3 years.

In addition, as mentioned earlier, among the “malus clauses” it has been established that if in one year the BBVA Group had negative financial results (presented losses), not including one-off results, the beneficiaries will not receive neither the Annual Variable Remuneration corresponding to the year of the losses, nor the deferred amounts that were payable for the year in which the financial statements reflecting these negative results were approved.

However, any variable remuneration that is pending payment will always be paid, provided that such payment is sustainable in terms of the situation of the BBVA Group as a whole.


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