Carlos Torres Made $4.1 Million As Bbva Chairman In 2020, Down 44 Percent

2021-02-12   |   by CusiGO

Carlos Torres, BBVA chairman, received 4.09 million euros last year, according to the agency’s annual compensation report submitted to the national securities and Market Commission on Friday. That’s 44% of what Torres became president of the world bank in 2019, because he voluntarily gave up variable pay, including 330 employees of the entire senior management, Last March, after the pandemic spread to Europe, the European Central Bank (ECB) put forward suggestions in this regard. The bank announced at the end of January that it would achieve 1.305 billion euros by 2020.

According to the report, Torres’s fixed salary is $2.45 million, the same as in 2019. In addition, there are 1.64 million euros in pension plan contributions, which will fall this year because, according to the agency’s detailed description, from 2021, this figure will be equivalent to 15% of the fixed annual salary. In addition, the bank received two actual contributions: a death and disability insurance premium of $377000 and a compensation in kind of $228000.

In the case of the bank’s chief executive, onur Gen à, the fixed salary is 2.18 million euros. It has no retirement contributions, but has $1.25 million in fixed pay and mobility benefits. In other words, their total salary was $3.43 million, down 45% from 2019, because they gave up variable pay. In addition, the bank paid the first year’s death and disability insurance premium (? 253000) and benefits in kind (? 132000).

As for BBVA, there are 13 non-executive directors with a total annual salary of $4.08 million. In addition, there is a reward in kind of 95000 euros. The report reflects changes in the senior compensation policy, which will be voted at the next general meeting and implemented in fiscal years 2021, 2022 and 2023. As the world bank detailed to cnmv, in addition to the above changes in the president’s social security plan contributions, the timetable, targets and improvements will be changed to enhance transparency.

One of the amendments refers to “a modification to the Malus and clawback clause,” which allows banks to demand variable compensation payments to their executive directors. Since 2021, it will include “a new assumption that banks may apply the reduction and recovery mechanism in case of reputation damage caused by the actions of recovering beneficiaries”. That is, if BBVA believes that any of its leaders have hurt the entity, it can recover part of the payment.

In fact, BBVA was investigated at a national hearing on cenyt, the company of retired Commissioner Jose Manuel villareho. As the bank stated in another document, consolidated annual accounts, consolidated management report and audit report, submitted to cnmv, this procedure investigates “hypothetical facts that may constitute bribery, discovery and disclosure of trade secrets and corruption.”. “Some current and former directors and employees of the group, as well as former directors, are also investigating the case,” the document added. Although not explicitly mentioned, in the pre-trial proceedings in this case, Francisco Gonz á lez was a defendant who had been the president of the bank until 2018.

In the management report, the agency also reported its tax information for fiscal year 2020. According to the report, BBVA paid 1.556 billion euros in corporate tax in cash. Most of this was spent on activities in Mexico, reaching $1.25 billion. Turkey was followed by 378 million euros, as well as other US, European and Asian markets. In fact, Spain is the only entity in these markets that does not collect corporate tax but receives a net cash return of 699 million euros. This is due to “the difference between the current year’s instalments and the repayment of the previous year’s instalments”.

The bank’s pre tax profit in Spain, like Finland’s, is the only negative profit. The impact in 2020 will be $2.108 billion, including $2.084 billion in impairment of its US subsidiaries. The group’s total tax contribution, including all types of tax payments related to the business, was $8.325 billion, of which $3.288 billion was for its own taxes and the rest for third-party taxes, compared with $9.29 billion in 2019.

As of December 31, 2020, BBVA pointed out that it has four institutions in places that Spain or OECD consider tax havens. In the Caymans, it closed one branch in 2018 and last year maintained four issuers, two of which were issued through guarantee groups. Last year, the total amount of debt and other fixed rate securities issued through these institutions was $2533 million, compared with $3172 million in 2019. The entity stated that it conducted internal and external audits of the activities of these institutions and monitored whether transfers between these institutions and their banks in Spain were in accordance with Spanish law.