3.7 million: the compensation that the directors of companies that are on the stock market receive
In 2025 there were settlements that soared to 40.9 million at Telefónica or 4.4 million at Iberdrola
BarcelonaThe average compensation that directors of companies listed on the stock exchange receive for the termination of their contractual relationship stood at 3.7 million euros last year. The amount, far exceeded by some multi-million euro settlements, especially in companies on the Ibex, the major stock market benchmark, is extremely far from the average of 9,000 euros received by laid-off workers. In any case, there is a lot of variability depending on the sectors, from about 2,400 euros in hospitality to more than 32,000 in banking and the financial sector, according to data from the Ministry of Labor.
The report on the remuneration of boards of directors of listed companies published by the National Securities Market Commission (CNMV) highlights that some compensations drove up the average remuneration of some governing bodies. This is the case of Telefónica, where the former chairman, José María Álvarez-Pallete, and the former CEO, Ángel Vila, pocketed 40.9 million euros for their departure from the company. At Iberdrola, the former CEO, Armando Martínez, received 4.4 million when he was replaced by Pedro Azagra. At Indra, Luis Abril, general manager of the subsidiary Minsait, received 1.3 million when he was relieved of his position, according to data collected by the CNMV.
The same study reveals that the average remuneration of directors of listed companies who held the position for the full year increased by 12.2% last year, to 477,000 euros per year. That of executive directors, who have management responsibilities, grew more than double that of non-executive directors, with a rise of 26.3% and an average of up to 2.4 million.
In listed companies, the highest remunerations correspond to executive chairmen, whose average remuneration was 3.7 million euros in 2025. This figure represents an increase of almost 61% compared to the 2.3 million in 2024.
Executive chairmen are followed by CEOs, whose average remuneration was 3 million euros (2.8 million in 2024). Next are the rest of the executive directors, with an average remuneration of 1.2 million euros (1 million in 2024), and, in fourth place, non-executive chairmen, with 411,000 euros (472,000 euros in 2024).
The CNMV sees a lack of clarity
The CNMV's analysis examines the remuneration systems applied to board members and determines that 37% of their compensation is variable, which includes severance payments. In Ibex companies, which have higher market liquidity, this proportion is 40%, and in the rest, it is 29% of the total remuneration.
The report also concludes that "sometimes the conditions for the accrual and vesting of economic rights in favor of the board member are not explained with sufficient detail and clarity, nor is the compatibility of long-term savings scheme benefits with severance payments, nor is sufficiently clear information provided regarding the moment when the board member is entitled to the effective monetary or share-based receipt of economic benefits from the moment of termination, even if this occurs before the normal retirement age (which, in practice, turns these types of remuneration into severance payments and their correlative impact on recommendation 64 of the Good Governance Code)".
In general, the severance payments provided for in the contracts of board members —mainly executives— for the termination of their contractual relationship with the company must be paid, except in cases where the termination is due to the board member's own free will or a serious breach of their obligations, according to the CNMV. However, it is exceptional—outside the banking sector— for these clauses that recognize a severance payment to "modulate or condition the receipt of these amounts on the performance and financial situation of the entity, and that, when they leave, the company is not left in a bad economic or financial situation in which its viability could be compromised".
During 2025, 15 directors received amounts related to compensation from 12 companies. These are the ones that resulted in an average of 3.7 million euros. The CNMV explains that it has worked with a sample of 47 companies (28 from the Ibex and 19 that are not part of it), which describe in their remuneration reports some type of indemnity clause in the event of the dismissal of executive directors.
These clauses involved a total of 66 executive directors in 2025. The previous year, the sample was 46 companies (29 from the Ibex and 17 not included in this index). These clauses affected a total of 65 executive directors in 2024.