As specified above, in 2015 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 annual variable incentives in 2015 for executive directors has been determined by the Group’s earnings performance, through the following indicators: net attributable profit from ongoing operations, Economic Value Added (EVA) from ongoing operations, Efficiency Ratio, Gross Loss Absorption Capacity (operating income), and customer satisfaction (IReNe), and the assessment of the achievement of the tactical indicators in the case of the CEO and the executive director and Manager of Global Economics, Regulations & Public Affairs (GERPA), approved at the beginning of the year.
The amount of annual variable remuneration has been obtained from the level of fulfillment of the indicators shown, based on the achievement scales approved by the Board of Directors for each indicator. These scales take into account both budgetary fulfillment and the year-on-year variation of the results of each indicator with respect to the results obtained the previous year.
The Net Attributable Profit from ongoing operations has increased by 43.30% in 2015 compared to 2014, and stands above the target set for this indicator at the beginning of the year.
As regards the EVA from ongoing operations, even though its year-on-year performance has been very positive, nearly doubling the figures posted in 2014, the result is below the target set at the beginning of the year. The main reason why the target set for this indicator has not been attained is due basically to two elements. On the one hand, the strong impact of the changes in the exchange rate on the Bank’s balance sheet, with a negative performance, especially in the last months of the year. On the other, the negative variation of the unrealized capital gains as a result of the significant decline in the global markets seen in the last part of 2015.
The Efficiency Ratio and Operating Income indicators show a result close to the target set and an upward trend compared to the results obtained in 2014, which has resulted in an increase of 9.20% in the case of Operating Income.
Similarly, the annual 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 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.