Stock market watchdog to toughen up on remuneration declarations

From January 1, 2014, Spain’s markets watchdog, the CNMV, is to demand more detailed information about the pay packages received by executives at companies listed on the stock exchange. For the first time the supervisor is requesting that all remuneration be exhaustively detailed and compared with amounts paid out the previous year.

The obligation to publish individual salary details was established in the Sustainable Economy Law of March 2011, but the then-Socialist government, and subsequently the Popular Party government, delayed the implementation of the measure. It was not until March 2013 that the Economy Ministry put it into motion.

According to the new rules being rolled out by the CNMV, companies will have to provide detailed explanations of their remuneration policies, including the processes used to set salaries and bonuses, the nature of both fixed and variable salary amounts, long-term saving policies (including retirement, pensions and any other benefits) and compensation amounts agreed upon in the case of the termination of employment.

The CNMV has also included a detailed series of definitions in order to avoid the current situation, whereby companies bring their own interpretations of what exactly is defined as remuneration, in order to avoid declaring it to the CNMV.