Board of Directors’ compensation
The principle that defines Repsol's compensation policy is the pursuit of reciprocal value generation for the Group and its employees, in addition to long-term alignment with shareholders' interests, ensuring transparency in the compensation policy. Repsol's Compensation Policy outlines the principles and criteria regarding the compensation of directors in their roles and for the performance of executive duties. These principles and criteria are regularly reviewed by the Compensation Committee and the Board of Directors with the aim of keeping the company's compensation policy in line with best market practices and trends.
Principles taken into account in the compensation of executive directors for the performance of their executive functions:
- Ensure that the compensation, in terms of structure and global amount, complies with best practices and is competitive in relation to other comparable entities in order to attract, retain, and motivate the best professionals.
- Establish compensation with objective criteria related to the individual performance of the executive directors and the achievement of the business objectives of the company and the Group.
- Maintain an annual variable component linked to the achievement of specific and quantifiable objectives that are aligned with social interest, with control and measurement systems to determine the payment of variable compensation in accordance with evaluations that measure individual performance and personal contribution to the achievement of the objectives set.
- Incorporate a long-term performance-based compensation system to encourage the sustained achievement of goals and to retain key persons linked to those goals.
- Maintain an adequate balance between the different components of the compensation package in line with best practices worldwide. Among other aspects, information received from Company shareholders, institutional shareholders, and proxy advisers was considered within the context of consulting and engagement processes carried out by Repsol.
- Ensure alignment with shareholders interests by encouraging the holding of shares.
- Keep the remuneration policy of the executive directors in line with that of senior management.
Furthermore, the compensation of the directors in their roles as such is based on the following principles:
- Compensation must be sufficient and appropriate to the dedication, qualification, and responsibilities of the directors, without this compensation compromising their independence of mind.
- Compensation must be in line with what is commonly accepted on the market. To this end, the compensation of directors established in other Spanish and European listed companies of a similar size and whose business complexity, operations, and the geographic distribution of their assets is similar to those of Repsol, will be taken into account.
Previous reports on the Board of Directors' compensation